WYOMISSING, Pa., Oct 21, 2010 (BUSINESS WIRE) -- Penn National Gaming, Inc. (Nasdaq: PENN):
- Third Quarter Diluted Earnings Per Share Attributable to
Shareholders of $0.46 Inclusive of $0.10 of Per Share Benefit from Gain
on Legal Settlement and Fire Insurance Proceeds -
- Establishes 2010 Fourth Quarter Guidance and Updates 2010 Full Year
Guidance -
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Conference Call:
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Today, October 21, 2010 at 10:00 a.m. ET
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Dial-in number:
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212/271-4651
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Webcast:
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www.pngaming.com
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Replay information provided below
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Penn National Gaming, Inc. (PENN: Nasdaq) today reported third quarter
operating results for the three months ended September 30, 2010, as
summarized below:
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Summary of Third Quarter Results
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| (in millions, except per share data) |
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Three Months Ended September 30,
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2010 Actual |
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2010 Guidance
(2)
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2009 Actual |
| Net revenues |
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$
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638.3
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$
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622.9
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$
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620.4
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| Adjusted EBITDA (1) |
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162.0
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149.9
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144.3
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Less impact of stock compensation, impairment losses, Empress
Casino Hotel fire, depreciation and amortization, gain/loss on
disposal of assets, interest expense - net, income taxes, loss on
early extinguishment of debt, and other expenses
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(113.7
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(118.1
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(122.9
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| Net income attributable to the shareholders of Penn |
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| National Gaming, Inc. and subsidiaries |
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$
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48.3
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$
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31.8
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$
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21.4
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| Diluted earnings per common share attributable to the |
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shareholders of Penn National Gaming, Inc. and subsidiaries
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$
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0.46
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$
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0.30
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$
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0.20
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(1)
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Adjusted EBITDA is income (loss) from operations, excluding the
impact of stock compensation, impairment losses, Empress Casino
Hotel fire, depreciation and amortization, and gain or loss on
disposal of assets, and is inclusive of loss from unconsolidated
affiliates. A reconciliation of net income (loss) attributable to
the shareholders of Penn National Gaming, Inc. and subsidiaries per
accounting principles generally accepted in the United States of
America ("GAAP") to adjusted EBITDA, as well as income (loss) from
operations per GAAP to adjusted EBITDA, is included in the
accompanying financial schedules.
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(2)
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The figures in this column present the guidance Penn National Gaming
provided on July 22, 2010 for the three months ended September 30,
2010.
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Review of Third Quarter 2010 Results vs. Guidance and Third Quarter
2009 Results
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Three Months |
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Ended |
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September 30, 2010 |
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After-tax |
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(in thousands) |
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Net income attributable to the shareholders of Penn National
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Gaming, Inc. and subsidiaries, as reported
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$
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48,345
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Capital House litigation settlement (1)
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(6,171
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Gain on Empress Casino Hotel fire claim (2)
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(3,770
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Property and unconsolidated affiliates results
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(6,887
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Currency translation loss
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676
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Effective tax rate benefit due to state tax impact
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(1,471
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Other
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1,076
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Net income attributable to the shareholders of Penn National
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Gaming, Inc. and subsidiaries, per guidance (3)
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$
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31,798
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Three Months Ended |
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September 30, |
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2010
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2010 Guidance (3) |
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2009
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Diluted earnings per common share attributable to the shareholders
of Penn National
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Gaming, Inc. and subsidiaries
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$
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0.46
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$
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0.30
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$
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0.20
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Capital House litigation settlement (1)
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(0.06
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-
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-
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Gain on Empress Casino Hotel fire claim (2)
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(0.04
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-
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-
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Loss on early extinguishment of debt
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-
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-
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0.02
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Write-off of construction in progress for Black Gold Casino at Zia
Park and Penn Kansas
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-
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-
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0.01
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Ohio lobbying expenses
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-
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-
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0.10
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Income taxes
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-
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0.01
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-
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Depreciation and amortization/loss on disposal of equipment/stock
option expense
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-
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-
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-
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Currency translation loss
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0.01
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-
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0.01
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| Diluted earnings per common share attributable to the
shareholders of Penn National |
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| Gaming, Inc. and subsidiaries excluding items not included in
guidance |
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$
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0.37
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$
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0.31
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$
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0.34
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(1)
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In conjunction with Penn National's 2005 acquisition of Argosy
Gaming Company, Penn National became responsible for existing
litigation related to Argosy's Baton Rouge casino license (Penn
National divested Argosy Casino Baton Rouge just after completing
its acquisition of Argosy Gaming Company). As part of the Argosy
acquisition, the Company recorded an estimate of the potential
liability. Following the U.S. Supreme Court's decision not to hear
the plaintiff's appeal the Company recorded a $9.6 million pre-tax
or $6.2 million after tax non-cash gain.
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(2)
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Reflects a $5.9 million pre-tax gain or $3.8 million after-tax gain
from advances against an ongoing claim related to the Empress Casino
Hotel fire in March 2009 for property and business interruption
insurance. The Company anticipates additional proceeds upon final
settlement of this claim.
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(3)
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The guidance figures in the tables above present the guidance Penn
National Gaming provided on July 22, 2010 for the three months ended
September 30, 2010.
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Peter M. Carlino, Chairman and Chief Executive Officer of Penn National
Gaming commented, "Penn National was active and productive during the
third quarter as we continued to build property level EBITDA margins,
drove increased visitation and revenue at Hollywood Casino at Charles
Town Races and Hollywood Casino at Penn National Race Course through the
addition of table games, opened Hollywood Casino Perryville ahead of
schedule, and advanced our existing development pipeline while expanding
Penn National's potential to participate in gaming in several new
jurisdictions, including Las Vegas.
"Third quarter revenue, EBITDA, net income and EPS surpassed guidance
and reflect the combination of higher than anticipated contributions
from new gaming offerings at two properties and our commitment to
achieving operating efficiencies, and undertaking rational marketing
programs and spending throughout the organization. Our properties' third
quarter EBITDA exceeded guidance by $12.0 million pre-tax, or $6.9
million after-tax, amounting to $0.06 per diluted share upside relative
to our guidance. Notably, third quarter 2010 property level EBITDA
margins, excluding pre-opening costs of $2.8 million at Hollywood Casino
Perryville, rose to 28.5% compared with 27.8% in the same period in 2009
and 27.0% in the 2010 second quarter. The significant margin increase is
attributable to the further rationalization of our marketing and
promotional offers to customers as well as the benefit of operating
leverage related to the incremental revenue being generated at Hollywood
Casino at Charles Town Races and Hollywood Casino at Penn National Race
Course following the placement of table games at these properties during
the quarter.
"On September 27, we opened Hollywood Casino Perryville in Cecil County,
Maryland to strong patronage and play levels. Hollywood Casino
Perryville extends both our Hollywood Casino(R) brand and our East Coast
presence. The facility features 1,500 slots and was developed at a cost
of $98 million inclusive of licensing. Hollywood Casino Perryville is
located less than a half-mile from I-95 and 31 miles north of the
Baltimore beltway and the location is expected to provide a more
convenient gaming option for those Maryland players currently playing in
Delaware.
"During the third quarter, Penn National also furthered its long-term
strategy to diversify the Company's pari-mutuel operations and grow its
presence in key markets by acquiring or investing in assets that would
benefit from the placement of gaming devices. Last month, we established
a joint venture that will own and operate in Texas the Sam Houston Race
Park in Houston, the Valley Race Park in Harlingen and a planned
racetrack in Laredo, subject to regulatory approval and certain other
closing conditions. Similar to the recent acquisition of our second
track in Ohio and our role as a joint venture partner in the Maryland
Jockey Club, the Sam Houston JV includes ownership of significant real
estate in addition to the potential for gaming in the future. We look
forward to working with community and state leaders to advance efforts
to bring gaming to Texas.
"Elsewhere, we broke ground in August on Hollywood Casino Toledo, are
proceeding with design, planning and environmental remediation
activities related to Hollywood Casino Columbus ahead of a planned
groundbreaking early next year, and have commenced construction of
Hollywood Casino Kansas City.
"Early in the current quarter, Penn National purchased all the
outstanding debt of M Resort from Bank of Scotland for $230.5 million.
The debt purchase creates a path for Penn National to own an upscale
locals and destination-oriented casino resort which is renowned for its
gaming, dining and lodging experiences. Since announcing the debt
purchase, we have been in a constructive dialog with the property's
equity holders regarding ownership and future operations.
"The Company repurchased 1,117,610 Penn National common shares at an
average price of $23.21 during the third quarter. This follows the
repurchase of 408,790 shares common stock in the second quarter at an
average price of $24.25.
"We are pleased with the progress of our existing portfolio of
properties in light of the current economic environment. Additionally,
we are excited about our pipeline of future projects under construction
and longer term projects which are dependent on potential future
enabling legislation."
Development and Expansion Projects
The table below summarizes Penn National Gaming's current facility
development projects:
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| Project/Scope |
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New
Gaming
Positions
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Planned
Total
Budget
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Penn National's
Share of Planned
Total
Budget
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Amount
Expended
through
September
30,
2010
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Expected
Opening
Date
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| (in millions) |
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| Hollywood Casino Lawrenceburg (IN) - Amenities - New
steakhouse/lounge, mid-priced restaurant/bar and coffee venue.
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-
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$14
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$14
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$13.8
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Steakhouse/Lounge & Bar - Opened April 2010
Mid-Priced
Restaurant/Bar/Coffee - Opened July 2010
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| Hollywood Casino Perryville (MD) - New 75,000 square foot
facility in Perryville, MD with 1,500 video lottery terminals, food
and beverage offerings and parking.
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1,500
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$98
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$98
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$74.0
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Opened - September 27, 2010
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| Empress Casino Hotel (IL) - Construction of an 1,100 space
parking garage, new pavilion containing restaurants and public
areas, Phase II gaming vessel upgrades, rebranding of property to
Hollywood.
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-
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$81 (1) |
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$81 (1) |
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$39.7 (1) |
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Parking Deck - Opened February 2010 Land-Based Pavilion - 4th
Quarter 2010 Phase II Vessel Upgrades - 1st Quarter 2011
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| Hollywood Casino at Charles Town Races (WV) - Renovations to
various areas of existing facility to allow for 85 table games, 27
poker tables, a steakhouse, sports bar and entertainment lounge.
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865
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$40
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$40
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$20.5
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Table Games/Poker Opened July 2010/ Steakhouse - 4th Quarter 2010/
Sports Bar and Entertainment Lounge -TBD
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| Hollywood Casino at Penn National Race Course (PA) - Addition
of 40 table games and 12 poker tables at the existing facility.
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400
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$25
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$25
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$23.1
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Opened - July 2010
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| Hollywood Casino Toledo (OH) - Construction is underway for
the Toledo site, with a casino opening with 2,000 slot machines, 60
table games and 20 poker tables, structured and surface parking,
plus food and beverage outlets and entertainment lounge.
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2,620
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$300
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$300
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$10.7
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First Half 2012
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| Hollywood Casino Columbus (OH) - Project scope and budgets
are in development for the Columbus Delphi site with a casino
opening with up to 3,000 slot machines, 70 table games and 30 poker
tables, structured and surface parking, plus food and beverage
outlets and entertainment lounge.
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3,790
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$400
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$400
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$78.7
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4th Quarter 2012
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| Kansas Speedway (KS) - Project is underway with Kansas
Lottery Commission approval for an 82,000 square foot casino, with
approximately 2,000 slot machines, 52 table games including 12 poker
tables, a 1,253 space parking deck, plus a variety of dining and
entertainment options.
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2,375
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$411
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$155
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$20.0
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First Half of 2012
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(1)
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Net of amounts received from insurance proceeds.
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Financial Guidance
The table below sets forth current guidance targets for financial
results for the 2010 fourth quarter and full year, based on the
following assumptions:
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Includes the results for Beulah Park and a 49% equity interest in the
Maryland Jockey Club racing operations for the remainder of 2010;
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Excludes any results relating to the pending acquisition of a joint
venture interest in Sam Houston Race Park;
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Excludes any earnings impact resulting from the M Resort transaction;
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Includes a total of $10.5 million of pre-opening expenses for
Hollywood Casino at Charles Town Races table games, Hollywood Casino
Perryville, Hollywood Casino at Penn National Race Course table games,
the development of two gaming facilities in Ohio, and Empress Casino
Hotel for the 2010 full year, with approximately $1.8 million to be
incurred in the fourth quarter of 2010;
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Excludes any additional gain from insurance proceeds related to
Empress Casino Hotel fire which destroyed the casino's land side
entertainment pavilion;
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Depreciation and amortization charges in 2010 of $213.8 million, with
$56.2 million projected to be incurred in the fourth quarter of 2010;
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Estimated non-cash stock compensation expenses of $26.5 million for
2010, with $6.8 million of the cost incurred in the fourth quarter of
2010;
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LIBOR is based on the forward curve;
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Blended income tax rate of 43.0% for 2010, with a 45.0% rate for the
remainder of 2010;
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A diluted share count of approximately 106.2 million shares for the
full year; and,
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There will be no material changes in applicable legislation or
regulation, world events, weather, economic conditions, or other
circumstances beyond our control that may adversely affect the
Company's results of operations.
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| (in millions, except per share data) |
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Three Months Ending December 31, |
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Full Year Ending December 31, |
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2010 Guidance |
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2009 Actual |
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2010 Revised
Guidance
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2010 Prior
Guidance (2)
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2009 Actual |
| Net revenues |
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$
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629.7
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$
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555.8
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$
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2,458.6
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$
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2,442.9
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$
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2,369.3
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| Adjusted EBITDA (1) |
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144.0
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120.9
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597.0
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580.3
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565.8
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Less impact of stock compensation, impairment losses, Empress Casino
Hotel fire, depreciation and amortization, gain/loss on disposal of
assets, interest expense - net, income taxes, loss on early
extinguishment of debt, and other expenses
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(115.6
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)
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(478.8
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)
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(477.2
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)
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(476.0
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)
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(833.2
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Less: Net loss attributable to noncontrolling interests
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-
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(2.5
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)
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(2.2
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)
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-
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(2.5
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)
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| Net income (loss) attributable to the shareholders of Penn |
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| National Gaming, Inc. and subsidiaries |
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$
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28.4
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$
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(355.4
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)
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$
|
122.0
|
|
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$
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104.3
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|
$
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(264.9
|
)
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| Diluted earnings (loss) per common share attributable to the |
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| shareholders of Penn National Gaming, Inc. and subsidiaries |
|
|
|
$
|
0.27
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$
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(4.54
|
)
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|
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$
|
1.15
|
|
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$
|
0.98
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|
|
$
|
(3.39
|
)
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|
(1)
|
|
Adjusted EBITDA is income (loss) from operations, excluding the
impact of stock compensation, impairment losses, Empress Casino
Hotel fire, depreciation and amortization, and gain or loss on
disposal of assets, and is inclusive of loss from unconsolidated
affiliates.
|
|
(2)
|
|
These figures present the guidance Penn National Gaming provided on
July 22, 2010 for the full year ending December 31, 2010.
|
|
|
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|
PENN NATIONAL GAMING, INC. AND SUBSIDIARIES
|
|
Property Information - Operations
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(in thousands) (unaudited)
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NET REVENUES |
|
|
|
ADJUSTED EBITDA (1) |
|
|
|
|
Three Months Ended September 30, |
|
|
|
Three Months Ended September 30, |
|
|
|
|
2010 |
|
|
|
2009 |
|
|
|
2010 |
|
|
|
|
2009 |
|
Hollywood Casino at Charles Town Races
|
|
|
|
$
|
144,596
|
|
|
|
$
|
116,619
|
|
|
|
$
|
45,725
|
|
|
|
|
$
|
32,524
|
|
|
Hollywood Casino Lawrenceburg
|
|
|
|
|
110,949
|
|
|
|
|
119,286
|
|
|
|
|
33,563
|
|
|
|
|
|
37,609
|
|
|
Hollywood Casino at Penn National Race Course
|
|
|
|
|
84,666
|
|
|
|
|
73,457
|
|
|
|
|
19,703
|
|
|
|
|
|
12,971
|
|
|
Hollywood Casino Aurora
|
|
|
|
|
41,885
|
|
|
|
|
43,380
|
|
|
|
|
13,411
|
|
|
|
|
|
12,918
|
|
|
Empress Casino Hotel
|
|
|
|
|
32,256
|
|
|
|
|
38,613
|
|
|
|
|
8,010
|
|
|
|
|
|
10,750
|
|
|
Argosy Casino Riverside
|
|
|
|
|
46,192
|
|
|
|
|
48,539
|
|
|
|
|
16,128
|
|
|
|
|
|
16,866
|
|
|
Hollywood Casino Baton Rouge
|
|
|
|
|
27,221
|
|
|
|
|
29,452
|
|
|
|
|
9,451
|
|
|
|
|
|
11,075
|
|
|
Argosy Casino Alton
|
|
|
|
|
18,626
|
|
|
|
|
19,749
|
|
|
|
|
4,795
|
|
|
|
|
|
4,779
|
|
|
Hollywood Casino Tunica
|
|
|
|
|
21,412
|
|
|
|
|
23,804
|
|
|
|
|
5,401
|
|
|
|
|
|
5,800
|
|
|
Hollywood Casino Bay St. Louis
|
|
|
|
|
22,436
|
|
|
|
|
23,394
|
|
|
|
|
5,366
|
|
|
|
|
|
4,753
|
|
|
Argosy Casino Sioux City
|
|
|
|
|
13,816
|
|
|
|
|
13,589
|
|
|
|
|
5,051
|
|
|
|
|
|
5,140
|
|
|
Boomtown Biloxi
|
|
|
|
|
18,270
|
|
|
|
|
18,333
|
|
|
|
|
4,514
|
|
|
|
|
|
4,727
|
|
|
Hollywood Slots Hotel and Raceway
|
|
|
|
|
20,098
|
|
|
|
|
19,312
|
|
|
|
|
4,666
|
|
|
|
|
|
3,505
|
|
|
Bullwhackers
|
|
|
|
|
4,453
|
|
|
|
|
5,408
|
|
|
|
|
(382
|
)
|
|
|
|
|
18
|
|
|
Black Gold Casino at Zia Park
|
|
|
|
|
21,559
|
|
|
|
|
19,860
|
|
|
|
|
7,042
|
|
|
|
|
|
5,634
|
|
|
Hollywood Casino Perryville (2)
|
|
|
|
|
2,229
|
|
|
|
|
-
|
|
|
|
|
(2,378
|
)
|
|
|
|
|
-
|
|
|
Casino Rama management service contract
|
|
|
|
|
4,363
|
|
|
|
|
4,239
|
|
|
|
|
3,939
|
|
|
|
|
|
3,841
|
|
|
Raceway Park
|
|
|
|
|
1,710
|
|
|
|
|
2,009
|
|
|
|
|
(270
|
)
|
|
|
|
|
(199
|
)
|
|
Sanford-Orlando Kennel Club
|
|
|
|
|
1,393
|
|
|
|
|
1,383
|
|
|
|
|
(2
|
)
|
|
|
|
|
(176
|
)
|
|
Beulah Park (3)
|
|
|
|
|
126
|
|
|
|
|
-
|
|
|
|
|
(854
|
)
|
|
|
|
|
-
|
|
|
Unconsolidated affiliates
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(3,925
|
)
|
|
|
|
|
(36
|
)
|
|
Corporate overhead
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(16,945
|
)
|
|
|
|
|
(28,157
|
)
|
| Total |
|
|
|
$ |
638,256 |
|
|
|
$ |
620,426 |
|
|
|
$ |
162,009 |
|
|
|
|
$ |
144,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REVENUES |
|
|
|
ADJUSTED EBITDA (1) |
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
2010 |
|
|
|
2009 |
|
|
|
2010 |
|
|
|
|
2009 |
|
Hollywood Casino at Charles Town Races
|
|
|
|
$
|
360,176
|
|
|
|
$
|
355,958
|
|
|
|
$
|
106,035
|
|
|
|
|
$
|
100,541
|
|
|
Hollywood Casino Lawrenceburg
|
|
|
|
|
332,160
|
|
|
|
|
316,157
|
|
|
|
|
100,877
|
|
|
|
|
|
95,581
|
|
|
Hollywood Casino at Penn National Race Course
|
|
|
|
|
240,250
|
|
|
|
|
223,561
|
|
|
|
|
51,923
|
|
|
|
|
|
38,861
|
|
|
Hollywood Casino Aurora
|
|
|
|
|
127,763
|
|
|
|
|
144,480
|
|
|
|
|
32,210
|
|
|
|
|
|
45,074
|
|
|
Empress Casino Hotel (4)
|
|
|
|
|
102,708
|
|
|
|
|
75,122
|
|
|
|
|
26,575
|
|
|
|
|
|
17,469
|
|
|
Argosy Casino Riverside
|
|
|
|
|
142,394
|
|
|
|
|
147,304
|
|
|
|
|
50,026
|
|
|
|
|
|
50,830
|
|
|
Hollywood Casino Baton Rouge
|
|
|
|
|
86,777
|
|
|
|
|
95,884
|
|
|
|
|
31,789
|
|
|
|
|
|
38,384
|
|
|
Argosy Casino Alton
|
|
|
|
|
55,382
|
|
|
|
|
60,848
|
|
|
|
|
12,760
|
|
|
|
|
|
14,577
|
|
|
Hollywood Casino Tunica
|
|
|
|
|
65,690
|
|
|
|
|
71,925
|
|
|
|
|
17,819
|
|
|
|
|
|
17,970
|
|
|
Hollywood Casino Bay St. Louis
|
|
|
|
|
65,889
|
|
|
|
|
74,805
|
|
|
|
|
13,793
|
|
|
|
|
|
16,838
|
|
|
Argosy Casino Sioux City
|
|
|
|
|
42,314
|
|
|
|
|
40,828
|
|
|
|
|
15,594
|
|
|
|
|
|
14,835
|
|
|
Boomtown Biloxi
|
|
|
|
|
53,587
|
|
|
|
|
57,195
|
|
|
|
|
13,788
|
|
|
|
|
|
16,266
|
|
|
Hollywood Slots Hotel and Raceway
|
|
|
|
|
53,864
|
|
|
|
|
50,903
|
|
|
|
|
11,246
|
|
|
|
|
|
9,213
|
|
|
Bullwhackers
|
|
|
|
|
14,165
|
|
|
|
|
14,980
|
|
|
|
|
(997
|
)
|
|
|
|
|
329
|
|
|
Black Gold Casino at Zia Park
|
|
|
|
|
62,249
|
|
|
|
|
61,985
|
|
|
|
|
20,992
|
|
|
|
|
|
20,699
|
|
|
Hollywood Casino Perryville (2)
|
|
|
|
|
2,229
|
|
|
|
|
-
|
|
|
|
|
(3,154
|
)
|
|
|
|
|
-
|
|
|
Casino Rama management service contract
|
|
|
|
|
11,569
|
|
|
|
|
10,946
|
|
|
|
|
10,435
|
|
|
|
|
|
9,809
|
|
|
Raceway Park
|
|
|
|
|
4,875
|
|
|
|
|
5,610
|
|
|
|
|
(676
|
)
|
|
|
|
|
(545
|
)
|
|
Sanford-Orlando Kennel Club
|
|
|
|
|
4,723
|
|
|
|
|
4,978
|
|
|
|
|
290
|
|
|
|
|
|
170
|
|
|
Beulah Park (3)
|
|
|
|
|
126
|
|
|
|
|
-
|
|
|
|
|
(1,069
|
)
|
|
|
|
|
-
|
|
|
Unconsolidated affiliates
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(5,762
|
)
|
|
|
|
|
(755
|
)
|
|
Corporate overhead
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(51,497
|
)
|
|
|
|
|
(61,215
|
)
|
| Total |
|
|
|
$ |
1,828,890 |
|
|
|
$ |
1,813,469 |
|
|
|
$ |
452,997 |
|
|
|
|
$ |
444,931 |
|
|
(1)
|
|
Adjusted EBITDA is income (loss) from operations, excluding the
impact of stock compensation, impairment losses, Empress Casino
Hotel fire, depreciation and amortization, and gain or loss on
disposal of assets, and is inclusive of loss from unconsolidated
affiliates. A reconciliation of net income (loss) attributable to
the shareholders of Penn National Gaming, Inc. and subsidiaries per
GAAP to adjusted EBITDA, as well as income (loss) from operations
per GAAP to adjusted EBITDA, is included in the accompanying
financial schedules.
|
|
(2)
|
|
Hollywood Casino Perryville opened to the public on September 27,
2010 and results included $2.8 million and $3.6 million of
pre-opening costs in the three-month and nine-month periods ended
September 30, 2010, respectively.
|
|
(3)
|
|
Beulah Park was acquired on July 1, 2010.
|
|
(4)
|
|
Empress Casino Hotel was closed from March 20, 2009 until June 25,
2009 due to a fire.
|
|
|
|
Reconciliation of Adjusted EBITDA to Net income attributable to the
shareholders of Penn National Gaming, Inc. and subsidiaries (GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PENN NATIONAL GAMING, INC. AND SUBSIDIARIES
|
|
(in thousands) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
|
September 30, |
|
|
|
|
|
September 30, |
|
|
|
|
|
|
2010 |
|
|
|
|
|
2009 |
|
|
|
|
|
2010 |
|
|
|
|
|
2009 |
| Adjusted EBITDA |
|
|
|
|
|
$ |
162,009 |
|
|
|
|
|
|
$ |
144,342 |
|
|
|
|
|
|
$ |
452,997 |
|
|
|
|
|
|
$ |
444,931 |
|
|
Loss from unconsolidated affiliates
|
|
|
|
|
|
|
3,925
|
|
|
|
|
|
|
|
36
|
|
|
|
|
|
|
|
5,762
|
|
|
|
|
|
|
|
755
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
(53,842
|
)
|
|
|
|
|
|
|
(50,055
|
)
|
|
|
|
|
|
|
(157,675
|
)
|
|
|
|
|
|
|
(141,427
|
)
|
|
Charge for stock compensation
|
|
|
|
|
|
|
(6,704
|
)
|
|
|
|
|
|
|
(6,632
|
)
|
|
|
|
|
|
|
(19,757
|
)
|
|
|
|
|
|
|
(21,904
|
)
|
|
Impairment losses
|
|
|
|
|
|
|
(816
|
)
|
|
|
|
|
|
|
(120
|
)
|
|
|
|
|
|
|
(31,542
|
)
|
|
|
|
|
|
|
(11,809
|
)
|
|
Empress Casino Hotel fire
|
|
|
|
|
|
|
5,876
|
|
|
|
|
|
|
|
(211
|
)
|
|
|
|
|
|
|
5,662
|
|
|
|
|
|
|
|
(5,942
|
)
|
|
Gain (loss) on disposal of assets
|
|
|
|
|
|
|
14
|
|
|
|
|
|
|
|
44
|
|
|
|
|
|
|
|
(923
|
)
|
|
|
|
|
|
|
340
|
|
| Income from operations |
|
|
|
|
|
$ |
110,462 |
|
|
|
|
|
|
$ |
87,404 |
|
|
|
|
|
|
$ |
254,524 |
|
|
|
|
|
|
$ |
264,944 |
|
|
Interest expense
|
|
|
|
|
|
|
(32,412
|
)
|
|
|
|
|
|
|
(36,785
|
)
|
|
|
|
|
|
|
(99,615
|
)
|
|
|
|
|
|
|
(97,874
|
)
|
|
Interest income
|
|
|
|
|
|
|
398
|
|
|
|
|
|
|
|
956
|
|
|
|
|
|
|
|
1,739
|
|
|
|
|
|
|
|
5,650
|
|
|
Loss from unconsolidated affiliates
|
|
|
|
|
|
|
(3,925
|
)
|
|
|
|
|
|
|
(36
|
)
|
|
|
|
|
|
|
(5,762
|
)
|
|
|
|
|
|
|
(755
|
)
|
|
Loss on early extinguishment of debt
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
(3,599
|
)
|
|
|
|
|
|
|
(519
|
)
|
|
|
|
|
|
|
(3,599
|
)
|
|
Other
|
|
|
|
|
|
|
8,259
|
|
|
|
|
|
|
|
(2,560
|
)
|
|
|
|
|
|
|
8,245
|
|
|
|
|
|
|
|
2,419
|
|
|
Taxes on income
|
|
|
|
|
|
|
(34,437
|
)
|
|
|
|
|
|
|
(24,029
|
)
|
|
|
|
|
|
|
(67,140
|
)
|
|
|
|
|
|
|
(80,293
|
)
|
| Net income including noncontrolling interests |
|
|
|
|
|
|
48,345
|
|
|
|
|
|
|
|
21,351
|
|
|
|
|
|
|
|
91,472
|
|
|
|
|
|
|
|
90,492
|
|
|
Less: Net loss attributable to noncontrolling interests
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
(2,193
|
)
|
|
|
|
|
|
|
-
|
|
| Net income attributable to the shareholders of Penn National |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gaming, Inc. and subsidiaries |
|
|
|
|
|
$ |
48,345 |
|
|
|
|
|
|
$ |
21,351 |
|
|
|
|
|
|
$ |
93,665 |
|
|
|
|
|
|
$ |
90,492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Income from operations (GAAP) to Adjusted EBITDA
|
|
PENN NATIONAL GAMING, INC. AND SUBSIDIARIES
|
|
Property Information Including Corporate Overhead
|
|
(in thousands) (unaudited)
|
|
|
Three Months Ended September 30, 2010
|
|
|
|
|
|
|
Income (loss)
from
operations
|
|
|
Charge for stock
compensation
|
|
|
Impairment
losses
|
|
|
Empress Casino
Hotel Fire
|
|
|
Depreciation
and
amortization
|
|
|
Loss (gain)
on disposal of
assets
|
|
|
Loss from
unconsolidated
affiliates
|
|
|
Adjusted
EBITDA
|
|
Hollywood Casino at Charles Town Races
|
|
|
|
$
|
39,669
|
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
$
|
6,005
|
|
|
$
|
51
|
|
|
|
$
|
-
|
|
|
|
$
|
45,725
|
|
|
Hollywood Casino Lawrenceburg
|
|
|
|
|
24,071
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
9,492
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
33,563
|
|
|
Hollywood Casino at Penn National Race Course
|
|
|
|
|
10,854
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
8,893
|
|
|
|
(44
|
)
|
|
|
|
-
|
|
|
|
|
19,703
|
|
|
Hollywood Casino Aurora
|
|
|
|
|
11,570
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
1,841
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
13,411
|
|
|
Empress Casino Hotel
|
|
|
|
|
9,789
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(5,876
|
)
|
|
|
|
4,106
|
|
|
|
(9
|
)
|
|
|
|
-
|
|
|
|
|
8,010
|
|
|
Argosy Casino Riverside
|
|
|
|
|
12,924
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
3,217
|
|
|
|
(13
|
)
|
|
|
|
-
|
|
|
|
|
16,128
|
|
|
Hollywood Casino Baton Rouge
|
|
|
|
|
7,150
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
2,323
|
|
|
|
(22
|
)
|
|
|
|
-
|
|
|
|
|
9,451
|
|
|
Argosy Casino Alton
|
|
|
|
|
3,375
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
1,415
|
|
|
|
5
|
|
|
|
|
-
|
|
|
|
|
4,795
|
|
|
Hollywood Casino Tunica
|
|
|
|
|
3,752
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
1,647
|
|
|
|
2
|
|
|
|
|
-
|
|
|
|
|
5,401
|
|
|
Hollywood Casino Bay St. Louis
|
|
|
|
|
1,721
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
3,645
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
5,366
|
|
|
Argosy Casino Sioux City
|
|
|
|
|
3,913
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
1,130
|
|
|
|
8
|
|
|
|
|
-
|
|
|
|
|
5,051
|
|
|
Boomtown Biloxi
|
|
|
|
|
1,339
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
3,174
|
|
|
|
1
|
|
|
|
|
-
|
|
|
|
|
4,514
|
|
|
Hollywood Slots Hotel and Raceway
|
|
|
|
|
1,082
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
3,579
|
|
|
|
5
|
|
|
|
|
-
|
|
|
|
|
4,666
|
|
|
Bullwhackers
|
|
|
|
|
(616
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
234
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(382
|
)
|
|
Black Gold Casino at Zia Park
|
|
|
|
|
6,037
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
1,005
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
7,042
|
|
|
Hollywood Casino Perryville (1)
|
|
|
|
|
(2,380
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
2
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(2,378
|
)
|
|
Casino Rama management service contract
|
|
|
|
|
3,939
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
3,939
|
|
|
Raceway Park
|
|
|
|
|
(366
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
96
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(270
|
)
|
|
Sanford-Orlando Kennel Club
|
|
|
|
|
(130
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
128
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(2
|
)
|
|
Beulah Park (2)
|
|
|
|
|
(1,055
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
201
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(854
|
)
|
|
Unconsolidated affiliates
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(3,925
|
)
|
|
|
|
(3,925
|
)
|
|
Corporate overhead
|
|
|
|
|
(26,176
|
)
|
|
|
|
6,704
|
|
|
|
816
|
|
|
|
-
|
|
|
|
|
1,709
|
|
|
|
2
|
|
|
|
|
-
|
|
|
|
|
(16,945
|
)
|
| Total |
|
|
|
$ |
110,462 |
|
|
|
$ |
6,704 |
|
|
$ |
816 |
|
|
$ |
(5,876 |
) |
|
|
$ |
53,842 |
|
|
$ |
(14 |
) |
|
|
$ |
(3,925 |
) |
|
|
$ |
162,009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
from
operations
|
|
|
Charge for stock
compensation
|
|
|
Impairment
losses
|
|
|
Empress Casino
Hotel Fire
|
|
|
Depreciation
and
amortization
|
|
|
(Gain) loss
on disposal of
assets
|
|
|
Loss from
unconsolidated
affiliates
|
|
|
Adjusted
EBITDA
|
|
Hollywood Casino at Charles Town Races
|
|
|
$
|
26,445
|
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
6,084
|
|
|
$
|
(5
|
)
|
|
|
$
|
-
|
|
|
|
$
|
32,524
|
|
|
Hollywood Casino Lawrenceburg
|
|
|
|
27,615
|
|
|
|
|
-
|
|
|
|
120
|
|
|
|
-
|
|
|
|
9,874
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
37,609
|
|
|
Hollywood Casino at Penn National Race Course
|
|
|
|
5,213
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
7,758
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
12,971
|
|
|
Hollywood Casino Aurora
|
|
|
|
11,131
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,781
|
|
|
|
6
|
|
|
|
|
-
|
|
|
|
|
12,918
|
|
|
Empress Casino Hotel
|
|
|
|
8,249
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
211
|
|
|
|
2,290
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
10,750
|
|
|
Argosy Casino Riverside
|
|
|
|
13,950
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,953
|
|
|
|
(37
|
)
|
|
|
|
-
|
|
|
|
|
16,866
|
|
|
Hollywood Casino Baton Rouge
|
|
|
|
8,944
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,288
|
|
|
|
(157
|
)
|
|
|
|
-
|
|
|
|
|
11,075
|
|
|
Argosy Casino Alton
|
|
|
|
3,296
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,477
|
|
|
|
6
|
|
|
|
|
-
|
|
|
|
|
4,779
|
|
|
Hollywood Casino Tunica
|
|
|
|
4,256
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,538
|
|
|
|
6
|
|
|
|
|
-
|
|
|
|
|
5,800
|
|
|
Hollywood Casino Bay St. Louis
|
|
|
|
1,232
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,526
|
|
|
|
(5
|
)
|
|
|
|
-
|
|
|
|
|
4,753
|
|
|
Argosy Casino Sioux City
|
|
|
|
4,075
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,062
|
|
|
|
3
|
|
|
|
|
-
|
|
|
|
|
5,140
|
|
|
Boomtown Biloxi
|
|
|
|
1,659
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,926
|
|
|
|
142
|
|
|
|
|
-
|
|
|
|
|
4,727
|
|
|
Hollywood Slots Hotel and Raceway
|
|
|
|
85
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,425
|
|
|
|
(5
|
)
|
|
|
|
-
|
|
|
|
|
3,505
|
|
|
Bullwhackers
|
|
|
|
(161
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
178
|
|
|
|
1
|
|
|
|
|
-
|
|
|
|
|
18
|
|
|
Black Gold Casino at Zia Park
|
|
|
|
4,671
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
963
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
5,634
|
|
|
Casino Rama management service contract
|
|
|
|
3,841
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
3,841
|
|
|
Raceway Park
|
|
|
|
(298
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
99
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(199
|
)
|
|
Sanford-Orlando Kennel Club
|
|
|
|
(306
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
130
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(176
|
)
|
|
Unconsolidated affiliates
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(36
|
)
|
|
|
|
(36
|
)
|
|
Corporate overhead
|
|
|
|
(36,493
|
)
|
|
|
|
6,632
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,703
|
|
|
|
1
|
|
|
|
|
-
|
|
|
|
|
(28,157
|
)
|
| Total |
|
|
$ |
87,404 |
|
|
|
$ |
6,632 |
|
|
$ |
120 |
|
|
$ |
211 |
|
|
$ |
50,055 |
|
|
$ |
(44 |
) |
|
|
$ |
(36 |
) |
|
|
$ |
144,342 |
|
|
(1)
|
|
Hollywood Casino Perryville opened to the public on September 27,
2010 and results included $2.8 million of pre-opening costs in the
three-month period ended September 30, 2010.
|
|
(2)
|
|
Beulah Park was acquired on July 1, 2010.
|
|
|
|
Reconciliation of Income from operations (GAAP) to Adjusted EBITDA
|
|
PENN NATIONAL GAMING, INC. AND SUBSIDIARIES
|
|
Property Information Including Corporate Overhead
|
|
(in thousands) (unaudited)
|
|
|
Nine Months Ended September 30, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
from
operations
|
|
|
Charge for stock
compensation
|
|
|
Impairment
losses
|
|
|
Empress Casino
Hotel Fire
|
|
|
Depreciation
and
amortization
|
|
|
Loss (gain)
on disposal of
assets
|
|
|
Loss from
unconsolidated
affiliates
|
|
|
Adjusted
EBITDA
|
|
Hollywood Casino at Charles Town Races
|
|
|
$
|
87,784
|
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
$
|
18,210
|
|
|
$
|
41
|
|
|
|
$
|
-
|
|
|
|
$
|
106,035
|
|
|
Hollywood Casino Lawrenceburg
|
|
|
|
72,171
|
|
|
|
|
-
|
|
|
|
240
|
|
|
|
-
|
|
|
|
|
28,496
|
|
|
|
(30
|
)
|
|
|
|
-
|
|
|
|
|
100,877
|
|
|
Hollywood Casino at Penn National Race Course
|
|
|
|
25,856
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
26,016
|
|
|
|
51
|
|
|
|
|
-
|
|
|
|
|
51,923
|
|
|
Hollywood Casino Aurora
|
|
|
|
26,201
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
5,475
|
|
|
|
534
|
|
|
|
|
-
|
|
|
|
|
32,210
|
|
|
Empress Casino Hotel
|
|
|
|
22,216
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(5,662
|
)
|
|
|
|
10,089
|
|
|
|
(68
|
)
|
|
|
|
-
|
|
|
|
|
26,575
|
|
|
Argosy Casino Riverside
|
|
|
|
40,464
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
9,576
|
|
|
|
(14
|
)
|
|
|
|
-
|
|
|
|
|
50,026
|
|
|
Hollywood Casino Baton Rouge
|
|
|
|
24,824
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
6,874
|
|
|
|
91
|
|
|
|
|
-
|
|
|
|
|
31,789
|
|
|
Argosy Casino Alton
|
|
|
|
8,481
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
4,276
|
|
|
|
3
|
|
|
|
|
-
|
|
|
|
|
12,760
|
|
|
Hollywood Casino Tunica
|
|
|
|
12,938
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
4,864
|
|
|
|
17
|
|
|
|
|
-
|
|
|
|
|
17,819
|
|
|
Hollywood Casino Bay St. Louis
|
|
|
|
2,719
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
10,793
|
|
|
|
281
|
|
|
|
|
-
|
|
|
|
|
13,793
|
|
|
Argosy Casino Sioux City
|
|
|
|
12,267
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
3,314
|
|
|
|
13
|
|
|
|
|
-
|
|
|
|
|
15,594
|
|
|
Boomtown Biloxi
|
|
|
|
4,496
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
9,307
|
|
|
|
(15
|
)
|
|
|
|
-
|
|
|
|
|
13,788
|
|
|
Hollywood Slots Hotel and Raceway
|
|
|
|
787
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
10,454
|
|
|
|
5
|
|
|
|
|
-
|
|
|
|
|
11,246
|
|
|
Bullwhackers
|
|
|
|
(1,676
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
679
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(997
|
)
|
|
Black Gold Casino at Zia Park
|
|
|
|
17,661
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
3,319
|
|
|
|
12
|
|
|
|
|
-
|
|
|
|
|
20,992
|
|
|
Hollywood Casino Perryville (1)
|
|
|
|
(3,159
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
5
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(3,154
|
)
|
|
Casino Rama management service contract
|
|
|
|
10,435
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
10,435
|
|
|
Raceway Park
|
|
|
|
(972
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
296
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(676
|
)
|
|
Sanford-Orlando Kennel Club
|
|
|
|
(93
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
383
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
290
|
|
|
Beulah Park (2)
|
|
|
|
(1,270
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
201
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(1,069
|
)
|
|
Unconsolidated affiliates
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(5,762
|
)
|
|
|
|
(5,762
|
)
|
|
Corporate overhead
|
|
|
|
(107,606
|
)
|
|
|
|
19,757
|
|
|
|
31,302
|
|
|
|
-
|
|
|
|
|
5,048
|
|
|
|
2
|
|
|
|
|
-
|
|
|
|
|
(51,497
|
)
|
| Total |
|
|
$ |
254,524 |
|
|
|
$ |
19,757 |
|
|
$ |
31,542 |
|
|
$ |
(5,662 |
) |
|
|
$ |
157,675 |
|
|
$ |
923 |
|
|
|
$ |
(5,762 |
) |
|
|
$ |
452,997 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
from
operations
|
|
|
Charge for stock
compensation
|
|
|
Impairment
losses
|
|
|
Empress Casino
Hotel Fire
|
|
|
Depreciation
and
amortization
|
|
|
(Gain) loss
on disposal of
assets
|
|
|
Loss from
unconsolidated
affiliates
|
|
|
Adjusted
EBITDA
|
|
Hollywood Casino at Charles Town Races
|
|
|
$
|
82,270
|
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
18,273
|
|
|
$
|
(2
|
)
|
|
|
$
|
-
|
|
|
|
$
|
100,541
|
|
|
Hollywood Casino Lawrenceburg
|
|
|
|
65,414
|
|
|
|
|
-
|
|
|
|
11,809
|
|
|
|
-
|
|
|
|
18,352
|
|
|
|
6
|
|
|
|
|
-
|
|
|
|
|
95,581
|
|
|
Hollywood Casino at Penn National Race Course
|
|
|
|
12,987
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
25,876
|
|
|
|
(2
|
)
|
|
|
|
-
|
|
|
|
|
38,861
|
|
|
Hollywood Casino Aurora
|
|
|
|
39,627
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,441
|
|
|
|
6
|
|
|
|
|
-
|
|
|
|
|
45,074
|
|
|
Empress Casino Hotel (3)
|
|
|
|
6,152
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,942
|
|
|
|
5,348
|
|
|
|
27
|
|
|
|
|
-
|
|
|
|
|
17,469
|
|
|
Argosy Casino Riverside
|
|
|
|
42,136
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
8,725
|
|
|
|
(31
|
)
|
|
|
|
-
|
|
|
|
|
50,830
|
|
|
Hollywood Casino Baton Rouge
|
|
|
|
32,038
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,883
|
|
|
|
(537
|
)
|
|
|
|
-
|
|
|
|
|
38,384
|
|
|
Argosy Casino Alton
|
|
|
|
10,206
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,549
|
|
|
|
(178
|
)
|
|
|
|
-
|
|
|
|
|
14,577
|
|
|
Hollywood Casino Tunica
|
|
|
|
12,925
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,991
|
|
|
|
54
|
|
|
|
|
-
|
|
|
|
|
17,970
|
|
|
Hollywood Casino Bay St. Louis
|
|
|
|
6,286
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10,528
|
|
|
|
24
|
|
|
|
|
-
|
|
|
|
|
16,838
|
|
|
Argosy Casino Sioux City
|
|
|
|
11,512
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,288
|
|
|
|
35
|
|
|
|
|
-
|
|
|
|
|
14,835
|
|
|
Boomtown Biloxi
|
|
|
|
7,348
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
8,752
|
|
|
|
166
|
|
|
|
|
-
|
|
|
|
|
16,266
|
|
|
Hollywood Slots Hotel and Raceway
|
|
|
|
(1,230
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10,446
|
|
|
|
(3
|
)
|
|
|
|
-
|
|
|
|
|
9,213
|
|
|
Bullwhackers
|
|
|
|
(655
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
972
|
|
|
|
12
|
|
|
|
|
-
|
|
|
|
|
329
|
|
|
Black Gold Casino at Zia Park
|
|
|
|
17,485
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,214
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
20,699
|
|
|
Casino Rama management service contract
|
|
|
|
9,809
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
9,809
|
|
|
Raceway Park
|
|
|
|
(840
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
295
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(545
|
)
|
|
Sanford-Orlando Kennel Club
|
|
|
|
(226
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
396
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
170
|
|
|
Unconsolidated affiliates
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(755
|
)
|
|
|
|
(755
|
)
|
|
Corporate overhead
|
|
|
|
(88,300
|
)
|
|
|
|
21,904
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,098
|
|
|
|
83
|
|
|
|
|
-
|
|
|
|
|
(61,215
|
)
|
| Total |
|
|
$ |
264,944 |
|
|
|
$ |
21,904 |
|
|
$ |
11,809 |
|
|
$ |
5,942 |
|
|
$ |
141,427 |
|
|
$ |
(340 |
) |
|
|
$ |
(755 |
) |
|
|
$ |
444,931 |
|
|
(1)
|
|
Hollywood Casino Perryville opened to the public on September 27,
2010 and results included $3.6 million of pre-opening costs in the
nine-month period ended September 30, 2010.
|
|
(2)
|
|
Beulah Park was acquired on July 1, 2010.
|
|
(3)
|
|
Empress Casino Hotel was closed from March 20, 2009 until June 25,
2009 due to a fire.
|
|
|
PENN NATIONAL GAMING, INC. AND SUBSIDIARIES
|
|
Consolidated Statements of Income
|
|
(in thousands, except per share data) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
|
2010 |
|
|
2009 |
|
|
2010 |
|
|
2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
|
|
|
|
$
|
582,307
|
|
|
|
$
|
565,483
|
|
|
|
$
|
1,668,870
|
|
|
|
$
|
1,651,776
|
|
|
Management service fee
|
|
|
|
|
4,363
|
|
|
|
|
4,239
|
|
|
|
|
11,569
|
|
|
|
|
10,946
|
|
|
Food, beverage and other
|
|
|
|
|
85,787
|
|
|
|
|
87,404
|
|
|
|
|
250,971
|
|
|
|
|
258,273
|
|
|
Gross revenues
|
|
|
|
|
672,457
|
|
|
|
|
657,126
|
|
|
|
|
1,931,410
|
|
|
|
|
1,920,995
|
|
|
Less promotional allowances
|
|
|
|
|
(34,201
|
)
|
|
|
|
(36,700
|
)
|
|
|
|
(102,520
|
)
|
|
|
|
(107,526
|
)
|
|
Net revenues
|
|
|
|
|
638,256
|
|
|
|
|
620,426
|
|
|
|
|
1,828,890
|
|
|
|
|
1,813,469
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
|
|
|
|
|
309,991
|
|
|
|
|
303,420
|
|
|
|
|
890,473
|
|
|
|
|
887,602
|
|
|
Food, beverage and other
|
|
|
|
|
66,857
|
|
|
|
|
69,100
|
|
|
|
|
196,705
|
|
|
|
|
199,158
|
|
|
General and administrative
|
|
|
|
|
102,164
|
|
|
|
|
110,116
|
|
|
|
|
303,633
|
|
|
|
|
302,587
|
|
|
Impairment losses
|
|
|
|
|
816
|
|
|
|
|
120
|
|
|
|
|
31,542
|
|
|
|
|
11,809
|
|
|
Empress Casino Hotel fire
|
|
|
|
|
(5,876
|
)
|
|
|
|
211
|
|
|
|
|
(5,662
|
)
|
|
|
|
5,942
|
|
|
Depreciation and amortization
|
|
|
|
|
53,842
|
|
|
|
|
50,055
|
|
|
|
|
157,675
|
|
|
|
|
141,427
|
|
|
Total operating expenses
|
|
|
|
|
527,794
|
|
|
|
|
533,022
|
|
|
|
|
1,574,366
|
|
|
|
|
1,548,525
|
|
|
Income from operations
|
|
|
|
|
110,462
|
|
|
|
|
87,404
|
|
|
|
|
254,524
|
|
|
|
|
264,944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other income (expenses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
|
(32,412
|
)
|
|
|
|
(36,785
|
)
|
|
|
|
(99,615
|
)
|
|
|
|
(97,874
|
)
|
|
Interest income
|
|
|
|
|
398
|
|
|
|
|
956
|
|
|
|
|
1,739
|
|
|
|
|
5,650
|
|
|
Loss from unconsolidated affiliates
|
|
|
|
|
(3,925
|
)
|
|
|
|
(36
|
)
|
|
|
|
(5,762
|
)
|
|
|
|
(755
|
)
|
|
Loss on early extinguishment of debt
|
|
|
|
|
-
|
|
|
|
|
(3,599
|
)
|
|
|
|
(519
|
)
|
|
|
|
(3,599
|
)
|
|
Other
|
|
|
|
|
8,259
|
|
|
|
|
(2,560
|
)
|
|
|
|
8,245
|
|
|
|
|
2,419
|
|
|
Total other expenses
|
|
|
|
|
(27,680
|
)
|
|
|
|
(42,024
|
)
|
|
|
|
(95,912
|
)
|
|
|
|
(94,159
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income from operations before income taxes |
|
|
|
|
82,782
|
|
|
|
|
45,380
|
|
|
|
|
158,612
|
|
|
|
|
170,785
|
|
|
Taxes on income
|
|
|
|
|
34,437
|
|
|
|
|
24,029
|
|
|
|
|
67,140
|
|
|
|
|
80,293
|
|
| Net income including noncontrolling interests |
|
|
|
|
48,345
|
|
|
|
|
21,351
|
|
|
|
|
91,472
|
|
|
|
|
90,492
|
|
|
Less: Net loss attributable to noncontrolling interests
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(2,193
|
)
|
|
|
|
-
|
|
| Net income attributable to the shareholders of Penn National |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gaming, Inc. and subsidiaries |
|
|
|
$
|
48,345
|
|
|
|
$
|
21,351
|
|
|
|
$
|
93,665
|
|
|
|
$
|
90,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per common share attributable to the shareholders of |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Penn National Gaming, Inc. and subsidiaries: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share
|
|
|
|
$
|
0.51
|
|
|
|
$
|
0.22
|
|
|
|
$
|
0.97
|
|
|
|
$
|
0.94
|
|
|
Diluted earnings per common share
|
|
|
|
$
|
0.46
|
|
|
|
$
|
0.20
|
|
|
|
$
|
0.88
|
|
|
|
$
|
0.85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
77,414
|
|
|
|
|
78,255
|
|
|
|
|
78,228
|
|
|
|
|
78,044
|
|
|
Diluted
|
|
|
|
|
105,509
|
|
|
|
|
107,219
|
|
|
|
|
106,452
|
|
|
|
|
106,820
|
|
Diluted Share Count Methodology
Reflecting the issuance of 12,500 shares on October 30, 2008 of the
$1.25 billion, zero coupon, Series B Redeemable Preferred Stock and the
repurchase of 225 shares in the first quarter of 2010, Penn National
Gaming is required to adjust its diluted weighted average outstanding
share count for the purposes of calculating diluted earnings per share
as follows:
-
When the price of Penn National Gaming's common stock is less than
$45, the diluted weighted average outstanding share count is increased
by 27,277,778 shares (regardless of how much the stock price is below
$45);
-
When the price of Penn National Gaming's common stock is between $45
and $67, the diluted weighted average outstanding share count will be
increased by an amount which can be calculated by dividing the $1.23
billion (face value) by the current price per share. This will result
in an increase in the diluted weighted average outstanding share count
of between 18,320,896 shares and 27,277,778 shares depending on the
current share price; and,
-
When the price of Penn National Gaming's common stock is above $67,
the diluted weighted average outstanding share count will be increased
by 18,320,896 shares (regardless of how much the stock price exceeds
$67).
Repurchases of Common Stock
The repurchase of up to $200 million of Penn National Gaming's Common
Stock over the twenty-four month period ending July 2010 was authorized
by Penn National Gaming's Board of Directors in July 2008. On June 9,
2010, Penn National Gaming's Board of Directors authorized the
repurchase of up to $300 million of Common Stock effective immediately
and continuing until the Annual Meeting of Shareholders in 2011, unless
otherwise extended or shortened by the Board of Directors. This new
repurchase program replaced the program authorized by the Board of
Directors in July 2008.
During the three months ended September 30, 2010, Penn National Gaming
repurchased 1,117,610 shares of its Common Stock in open market
transactions for approximately $26.0 million at an average price of
$23.21 per share. Since April 1, 2010, Penn National Gaming has
repurchased 1,526,400 shares of its Common Stock in open market
transactions for approximately $35.9 million at an average price of
$23.49 per share pursuant to prior and current repurchase authorizations.
Reconciliation of Non-GAAP Measures to GAAP
Adjusted EBITDA, or earnings before interest, taxes, stock compensation,
impairment losses, Empress Casino Hotel fire, depreciation and
amortization, gain or loss on disposal of assets, and other income or
expenses, and inclusive of loss from unconsolidated affiliates, is not a
measure of performance or liquidity calculated in accordance with GAAP.
Adjusted EBITDA information is presented as a supplemental disclosure,
as management believes that it is a widely used measure of performance
in the gaming industry. In addition, management uses adjusted EBITDA as
the primary measure of the operating performance of its properties,
including the evaluation of operating personnel. Adjusted EBITDA should
not be construed as an alternative to operating income, as an indicator
of the Company's operating performance, as an alternative to cash flows
from operating activities, as a measure of liquidity, or as any other
measure of performance determined in accordance with GAAP. The Company
has significant uses of cash flows, including capital expenditures,
interest payments, taxes and debt principal repayments, which are not
reflected in adjusted EBITDA. It should also be noted that other gaming
companies that report adjusted EBITDA information may calculate adjusted
EBITDA in a different manner than the Company. Adjusted EBITDA is
presented as a supplemental disclosure, as management believes that it
is a principal basis for the valuation of gaming companies, as this
measure is considered by many to be a better indicator of the Company's
operating results than diluted net income (loss) attributable to the
shareholders of Penn National Gaming, Inc. and subsidiaries per GAAP. A
reconciliation of the Company's adjusted EBITDA to net income (loss)
attributable to the shareholders of Penn National Gaming, Inc. and
subsidiaries per GAAP, as well as the Company's adjusted EBITDA to
income (loss) from operations per GAAP, is included in the accompanying
financial schedules.
A reconciliation of each property's adjusted EBITDA to income (loss)
from operations is included in the financial schedules herein. On a
property level, adjusted EBITDA is reconciled to income (loss) from
operations per GAAP, rather than net income (loss) attributable to the
shareholders of Penn National Gaming, Inc. and subsidiaries per GAAP due
to, among other things, the impracticability of allocating interest
expense, interest income, income taxes and certain other items to the
Company's various properties on a property-by-property basis. Management
believes that this presentation is more meaningful to investors in
evaluating the performance of the Company's individual properties and is
consistent with the reporting of other gaming companies.
Conference Call, Webcast and Replay Details
Penn National Gaming is hosting a conference call and simultaneous
webcast at 10:00 am ET today, both of which are open to the general
public. The conference call number is 212/271-4651; please call five
minutes in advance to ensure that you are connected prior to the
presentation. Questions will be reserved for call-in analysts and
investors. Interested parties may also access the live call on the
Internet at www.pngaming.com;
allow 15 minutes to register and download and install any necessary
software.
Following its completion, a replay of the call can be accessed until
November 20, 2010 by dialing 800/633-8284 or 402/977-9140 (international
callers). The access code for the replay is 21484819. A replay of the
call can also be accessed for thirty days on the Internet at www.pngaming.com.
This press release, which includes financial information to be discussed
by management during the conference call and disclosure and
reconciliation of non-GAAP financial measures, is available on the
Company's web site, www.pngaming.com
in the "News" section (select link for "Press Releases").
About Penn National Gaming
Penn National Gaming owns, operates or has ownership interests in gaming
and racing facilities with a focus on slot machine entertainment. The
Company presently operates twenty-three facilities in sixteen
jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa,
Louisiana, Maine, Maryland, Mississippi, Missouri, New Jersey, New
Mexico, Ohio, Pennsylvania, West Virginia, and Ontario. In aggregate,
Penn National's operated facilities feature over 27,500 gaming machines,
over 500 table games, over 2,000 hotel rooms and over 1 million square
feet of gaming floor space.
Penn National Gaming recently opened Maryland's first casino and added
table games to its facilities in West Virginia and Pennsylvania. Through
a joint venture, Penn National is developing a full casino at Kansas
Speedway in Kansas City, which is anticipated to open in the first half
of 2012, and is also developing casinos in Toledo and Columbus, Ohio,
with openings targeted for 2012. The Company recently agreed to
establish a joint venture (subject to final approval by the Texas Racing
Commission and the satisfaction of certain other closing conditions) to
own and operate pari-mutuel operations in Texas, including the Sam
Houston Race Park in Houston, the Valley Race Park in Harlingen, and a
planned racetrack in Laredo.
Forward-looking Statements
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Actual
results may vary materially from expectations. Although Penn National
Gaming, Inc. and its subsidiaries (collectively, the "Company") believe
that our expectations are based on reasonable assumptions within the
bounds of our knowledge of our business and operations, there can be no
assurance that actual results will not differ materially from our
expectations. Meaningful factors that could cause actual results to
differ from expectations include, but are not limited to, risks related
to the following: our ability to receive regulatory approvals for our
proposed new businesses and to maintain regulatory approvals for our
existing businesses; our ability to receive regulatory approvals
required to complete, or other delays or impediments to completing, our
obtaining control of the equity or assets of The M Resort LLC, including
litigation from third parties; the passage of state, federal or local
legislation (including referenda) that would expand, restrict, further
tax, prevent or negatively impact operations in the jurisdictions in
which we do business (such as a smoking ban at any of our facilities) or
in jurisdictions where we seek to do business; the activities of our
competitors and the emergence of new competitors; increases in the
effective rate of taxation at any of our properties or at the corporate
level; delays or changes to, or cancellations of, planned capital
projects at our gaming and pari-mutuel facilities or an inability to
achieve the expected returns from such projects; construction factors,
including delays, unexpected remediation costs, local opposition and
increased cost of labor and materials; the ability to recover proceeds
on significant insurance claims; our ability to identify attractive
acquisition and development opportunities and to agree to terms with
partners for such transactions; the costs and risks involved in the
pursuit of such opportunities and our ability to complete the
acquisition or development of, and achieve the expected returns from
such opportunities; the availability and cost of financing; the
maintenance of agreements with our horsemen, pari-mutuel clerks and
other organized labor groups; the outcome of pending legal proceedings;
the effects of local and national economic, credit, capital market,
housing, energy conditions on the economy in general and on the gaming
and lodging industries in particular; changes in accounting standards;
third-party relations and approvals; our dependence on key personnel;
the impact of terrorism and other international hostilities; the impact
of weather; and other factors as discussed in the Company's Annual
Report on Form 10-K for the year ended December 31, 2009, subsequent
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed
with the SEC. The Company does not intend to update publicly any
forward-looking statements except as required by law.
SOURCE: Penn National Gaming, Inc.
Penn National Gaming, Inc.
William J. Clifford, 610-373-2400
Chief Financial Officer
or
Jaffoni & Collins Incorporated
Joseph N. Jaffoni, Richard Land, 212-835-8500
penn@jcir.com |
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