This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Penn National Gaming Reports Second Quarter Revenue And Adjusted EBITDA Of $712.6 Million And $189.8 Million, Respectively

Penn National Gaming, Inc. (PENN: Nasdaq):

Conference Call: Today, July 24, 2012 at 10:00 a.m. ET

Dial-in number: 212/231-2933

Webcast: www.pngaming.com

 

Replay information provided below

 

Penn National Gaming, Inc. (PENN: Nasdaq) today reported second quarter operating results for the three months ended June 30, 2012, as summarized below:

Summary of Second Quarter Results

(in millions, except per share data)   Three Months Ended

June 30,

    2012 Actual   2012 Guidance (2)   2011 Actual
Net revenues   $ 712.6   $ 711.0   $ 687.9  
Adjusted EBITDA (1)     189.8     187.9     189.6  
Less: Impact of stock compensation, insurance recoveries and deductible charges, depreciation and amortization, gain/loss on disposal of assets, interest expense - net, income taxes, and other expenses     (123.1 )   (120.5 )   (113.6 )
Net income   $ 66.7   $ 67.4   $ 76.0  
             
Diluted earnings per common share   $ 0.63   $ 0.64   $ 0.71  
 

(1)

 

Adjusted EBITDA is income (loss) from operations, excluding the impact of stock compensation, insurance recoveries and deductible charges, depreciation and amortization, and gain or loss on disposal of assets, and is inclusive of gain or loss from unconsolidated affiliates. A reconciliation of net income (loss) 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.

 

(2)

The figures in this column present the guidance Penn National Gaming provided on April 19, 2012 for the three months ended June 30, 2012.

 

Review of Second Quarter 2012 Results vs. Guidance and Second Quarter 2011 Results

 
  Three Months
Ended
June 30, 2012
    Pre-tax After-tax
    (in thousands)
Income, per guidance (1)   $ 110,496   $ 67,402  
Property and unconsolidated affiliates results     2,632     1,553  
Deal costs for Harrah's St. Louis transaction     (751 )   (473 )
Foreign currency translation gain     1,154     726  
Other     (565 )   (333 )
Income tax rate variance from guidance     -     (2,208 )
       
Income, as reported   $ 112,966   $ 66,667  
 
         
Three Months Ended
June 30,
    2012   2012 Guidance (1) 2011
Diluted earnings per common share   $ 0.63   $ 0.64   $ 0.71  
Deal costs for Harrah's St. Louis transaction and other     0.01     -     -  
Foreign currency translation gain     (0.01 )   -     -  
Insurance deductible charges for Hollywood Casino Tunica flood     -     -     0.03  
Final insurance settlement for Hollywood Casino Joilet fire     -     -     (0.10 )
M Resort transaction costs     -     -     0.01  
Income tax rate variance from guidance (2)     -     (0.02 )   (0.10 )
         
Diluted earnings per common share excluding items not included in guidance   $ 0.63   $ 0.62   $ 0.55  
 

(1)

 

The guidance figures in the tables above present the guidance Penn National Gaming provided on April 19, 2012 for the three months ended June 30, 2012.

 

(2)

The variance from guidance for the three months ended June 30, 2011 related primarily to a FIN 48 reserve reversal.

 

Peter M. Carlino, Chairman and Chief Executive Officer of Penn National Gaming commented, “While second quarter regional gaming market revenues generally softened from the pace of the first quarter, six of the sixteen properties that Penn National Gaming operated for both periods recorded year-over-year revenue increases. More significantly, eight of these sixteen properties generated adjusted EBITDA gains in the second quarter relative to the comparable year-ago period. Reflecting these results, our second quarter revenue and adjusted EBITDA both exceeded guidance. Reported adjusted EBITDA of $189.8 million reflects $2.6 million of property operating results that exceeded the expectations in our guidance and was inclusive of $8.0 million of total pre-opening expenses. In addition, reported adjusted EBITDA was impacted by $0.8 million of costs not anticipated in the guidance related to our agreement during the second quarter to acquire Harrah’s St. Louis, which we anticipate will close in the fourth quarter. The Company’s second quarter 2012 adjusted EBITDA margins declined compared to the prior year due to a $6.6 million increase in preopening and acquisition related transaction costs. However, adjusted EBITDA margins are consistent for both periods once these costs are excluded.

1 of 7

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,287.95 +21.96 0.13%
S&P 500 2,013.04 +1.68 0.08%
NASDAQ 4,587.4470 -5.9780 -0.13%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs