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Penn National Gaming, Inc. (PENN: Nasdaq) today reported second quarter operating results for the three months ended June 30, 2013, as summarized below:
Summary of Second Quarter Results
(in millions, except per share data)
Three Months Ended June 30,
2013 Guidance (2)
Adjusted EBITDA (1)
Less: Impact of stock compensation, impairment losses, insurance recoveries and deductible charges, depreciation and amortization, gain/loss on disposal of assets, interest expense - net, income taxes, and other expenses
Net (loss) income
Diluted (loss) earnings per common share (3)
Adjusted EBITDA is income (loss) from operations, excluding the impact of stock compensation, impairment losses, 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.
The figures in this column present the guidance Penn National provided on April 18, 2013 for the three months ended June 30, 2013.
Since the Company reported a loss from operations for the three months ended June 30, 2013, it was required by GAAP to use basic weighted-average common shares outstanding, rather than diluted weighted-average common shares outstanding, when calculating diluted loss per common share.
Review of Second Quarter 2013 Results vs. Guidance
June 30, 2013
Income, per guidance (1)
Midwest segment variance
Sioux City goodwill and intangible asset write-downs
Tornado insurance deductible charge at Hollywood St. Louis
Spin-off transaction costs
Gain on redemption of corporate debt securities and foreign currency
Tax rate differential
Income (loss), as reported
The guidance figures in the tables above present the guidance Penn National provided on April 18, 2013 for the three months ended June 30, 2013.
Peter M. Carlino, Chairman and Chief Executive Officer of Penn National Gaming, commented, “Second quarter operating results fell short of our guidance due to several factors: In addition to soft industry-wide regional gaming revenue trends, several properties in the Midwest and Southern Plains segments endured extreme weather, including tornados, flooding and construction disruption, which led to closures as well as insurance deductible charges. Other facilities were negatively impacted by competitive pressures, including marketing promotions that due to economic return considerations we elected not to match. Partially offsetting these challenges, our second quarter adjusted EBITDA includes $4.3 million of favorable tax settlements in various jurisdictions.