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Penn National Gaming Reports Third Quarter Revenue Of $707.0 Million And Adjusted EBITDA Of $168.6 Million Inclusive Of $19.2 Million Of Lobbying Expense

Stocks in this article: PENN

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


Conference Call:


Today, October 18, 2012 at 10:00 a.m. ET

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

Summary of Third Quarter Results

(in millions, except per share data)  

Three Months Ended September 30,

    2012 Actual  

2012 Guidance (2)

  2011 Actual
Net revenues   $ 707.0     $ 699.3     $ 710.9  
Adjusted EBITDA (1)     168.6       184.0       206.1  

Less: Impact of stock compensation, insurance recoveries anddeductible charges, depreciation and amortization, gain/loss ondisposal of assets, interest expense - net, income taxes, loss onearly extinguishment of debt, and other expenses

    (122.2 )     (125.5 )     (135.3 )
Net income   $ 46.4     $ 58.5     $ 70.8  
Diluted earnings per common share   $ 0.44     $ 0.55     $ 0.66  
(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 July 24, 2012 for the three months ended September 30, 2012.

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


Three Months Ended September 30, 2012

    Pre-tax   After-tax
    (in thousands)
Income, per guidance (1)   $ 95,875     $ 58,483  
Property and unconsolidated affiliates results     3,713       2,260  
Maryland lobbying efforts     (19,151 )     (19,151 )
Foreign currency translation loss and other     (2,653 )     (1,661 )
Discrete tax benefits not anticipated in guidance     -       6,515  
Income, as reported   $ 77,784     $ 46,446  

Three Months Ended September 30,


2012 Guidance (1)

Diluted earnings per common share   $ 0.44     $ 0.55     $ 0.66  
Maryland lobbying efforts     0.18       -       -  
Foreign currency translation (loss) gain and other     0.01       -       (0.02 )
Gain on sale of Maryland Jockey Club     -       -       (0.12 )
Loss on early extinguishment of debt     -       -       0.11  
Discrete tax benefits not anticipated in guidance     (0.06 )     -       -  
Tax rate variance from restructuring     -       -       (0.03 )
Diluted earnings per common share excluding items not included in guidance   $ 0.57     $ 0.55     $ 0.60  
(1) The guidance figures in the tables above present the guidance Penn National Gaming provided on July 24, 2012 for the three months ended September 30, 2012.

Peter M. Carlino, Chairman and Chief Executive Officer of Penn National Gaming, commented, “Despite the still challenging economic environment, regional market revenue trends and customer visitation levels remain largely stable and Penn National’s third quarter revenue and adjusted EBITDA exceeded guidance when excluding lobbying expenses. Our results again highlight the benefits of expanding and diversifying our gaming operations as well as the dedication and focus of our corporate and property management teams who continue to enhance operating efficiencies and maintain a disciplined approach to marketing and promotional activities.

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