WYOMISSING, Pa.–(BUSINESS WIRE)–PENN Entertainment, Inc. (“PENN” or the “Company”) (Nasdaq: PENN) today reported financial results for the three and nine months ended September 30, 2022.
2022 Third Quarter Highlights:
- Revenues of $1.6 billion, an increase of 7.5% year-over-year;
- Net income of $123.2 million and net income margin of 7.6%, as compared to net income of $86.1 million and net income margin of 5.7% in the prior year;
- Adjusted EBITDAR of $471.9 million, a decrease of 1.7% year-over-year;
- Adjusted EBITDA of $440.4 million, an increase of 20.9% year-over-year; and
- Adjusted EBITDAR margins of 29.0%, a decline of 273bps year-over-year.
- Continued Database Growth Led by the Younger Segment
- Successful Kansas Launch Powered by Omnichannel Execution
- Momentum in Ontario Demonstrates the Benefits of Our Owned Technology and Integrated Media Approach
- Repurchased $168.0 million of Common Stock at an Average Price of $31.40 Under Share Repurchase Authorization
- Reiterating 2022 Full Year Revenue and Adjusted EBITDAR Guidance
For further information, the Company has posted a presentation to its website regarding the third quarter highlights and accomplishments, which can be found here.
Jay Snowden, Chief Executive Officer and President, announced: “We are pleased to report another solid quarter despite operating in an uncertain economic environment. PENN generated revenues of $1.6 billion and Adjusted EBITDAR of $471.9 million. Our strong retail results were highlighted by ongoing database growth and stable margin performance, which continued through October. Meanwhile, our successful sports betting launch in Kansas, from both a retail and online perspective, underscores the advantage of our leading omnichannel strategy. In Ontario, we are enjoying early success during our first football season while benefitting from theScore Bet’s seamless transition to our own fully-integrated, proprietary tech stack. Based on our third quarter results and our continued consistent performance, we are reiterating our 2022 revenue and Adjusted EBITDAR guidance range of $6.15 billion to $6.55 billion and $1.875 billion to $2.00 billion, respectively.
New Retail Growth Projects
“On October 10th, we announced exciting new plans to relocate our riverboat casino licenses in Aurora and Joliet, Illinois to new land-based facilities in better locations and to build a new hotel at Hollywood Columbus in Ohio and a second hotel tower at the M Resort in Henderson, Nevada,” continued Mr. Snowden. “With an overall estimated budget of approximately $850 million, we expect these projects will generate strong free cash flow returns and create long-term value for our shareholders. We have the ability to access attractive financing from Gaming and Leisure Properties, Inc. (“GLPI”) (Nasdaq: GLPI) covering up to $575 million of the anticipated costs in addition to up to $50 million from the City of Aurora, which allows us the opportunity to pursue these high growth projects while preserving our cash position and leverage profile. In connection with these projects, we have entered into an agreement with GLPI to create a new master lease, with a fixed 1.5% escalator, that would include the two new facilities in Aurora and Joliet, in addition to Hollywood Columbus (OH), Hollywood Toledo (OH), the M Resort (NV), the Meadows (PA) and Hollywood Perryville (MD).
Continued Database Growth Led by the Younger Segment
Property level highlights1:
- Revenues of $1.5 billion;
- Adjusted EBITDAR of $547.7 million; and
- Adjusted EBITDAR margins of 37.3%.
“Our omnichannel strategy continues to drive growth across the Company,” commented Mr. Snowden. “We’re continuing to see strong growth in our mychoice database with year-over-year increases in rated theo across all demographic segments except for those aged 65 and over. Notably, more than half of our new mychoice members enrolled through our online offerings following the return of football season and the launch of our Kansas Sportsbook on September 1. Equally impressive is the more than 25% year-over-year increase of guests who engage with us across multiple channels. These guests demonstrate superior loyalty, play with us more frequently, and provide greater value compared to those who engage with us through a single channel. To further capture and retain this cohort, we continue to reimagine our properties with the latest gaming offerings, best in class technology, and new third-party restaurant concepts. During the third quarter, we completed our hotel remodel of all standard rooms at Hollywood Casino at Greektown, most of which were unavailable for approximately two years due to water damage and subsequent renovation. We also introduced our industry leading cashless, cardless and contactless technology (“3C’s”) in Kansas which represents our tenth property offering our 3C’s technology. Our guests that adopt the digital wallet come to our properties more often and generate greater volumes. Most recently, on October 21st, we celebrated the opening of the newest Barstool Sportsbook at L’Auberge Baton Rouge in Louisiana where we were joined by key Barstool talent, including Dave Portnoy and Dan “Big Cat” Katz.
Successful Kansas Launch Powered by Omnichannel Execution
Interactive Segment highlights:
- Revenues of $158.7 million (including tax gross up of $63.0 million); and
- Adjusted EBITDA loss of $49.3 million.
“Our Interactive segment experienced strong year-over-year revenue and user growth in the quarter and was profitable in October. Results for the quarter included costs associated with the launch of Kansas, our first football season in Ontario and Louisiana, the $12.5 million lobbying expense for the California sports betting initiative and a payment processing fee adjustment of $7.9 million. Given our strong revenue growth and disciplined approach to marketing, we remain confident in our ability to deliver profitability in 2023.
“Our omnichannel approach to marketing enabled us to deliver one of our most successful sportsbook launches to date in Kansas. Our retail and online sportsbooks generated a company record of first-time deposits on a per capita basis, and over 45% of our online handle was driven by our existing mychoice database. We are also seeing tangible benefits of our integrated media ecosystem approach in Ontario, with media users contributing over 80% more gross gaming revenue on theScore Bet than non-media users. This success positions us to capture greater share in the U.S. as we completed the initial integration of the Barstool Sportsbook into theScore media app on October 19th. Furthermore, our transition in Ontario to our proprietary technology platform has exceeded our expectations by performing seamlessly with increased utilization, new betting markets, and other features. Ontario has already become our top market in North America for online sports betting and online casino. We remain on track to migrate the Barstool Sportsbook to this platform in mid-2023, after which we will begin to realize significant cost savings and improved marketing capabilities.
“We are also seeing continued iCasino momentum as we introduce additional content from third parties as well as from Penn Games Studios, which developed its first in-house multi-line slot game set to launch next month. We are particularly excited about our initial iCasino results and retention KPIs in Ontario, which highlights the advanced promotional capabilities of our player account management system that we will bring to the Barstool Casino next year.
Growing Media Businesses
“TheScore grew year-over-year engagement this quarter and bolstered its sports media content offering with the addition of NFL Insider Jordan Schultz. Meanwhile, Barstool Sports, Inc. continues to add new content and build its audience, including the launch of a new NBA focused podcast featuring Pat Beverley of the Los Angeles Lakers. Furthermore, the Barstool College Football Tour is breaking attendance records and creating an unrivaled pre-game environment on college campuses across the country focusing on states in which PENN has a presence. The tour recently visited Baton Rouge, home to L’Auberge Casino & Hotel Baton Rouge, in connection with the LSU-Ole Miss game, which highlights our ability to cross promote the Barstool audience to our retail offerings.
ESG – Continuing to Care for our People, our Communities and our Planet
“As part of our ESG journey, this quarter PENN launched a Scope 1 and 2 carbon emissions assessment which we expect to be completed by the end of the year. In the meantime, we remain focused on enhancing our energy efficiency throughout our properties through LED lighting upgrades and the installation of EV charging stations and smart thermostats. On the Diversity, Equity and Inclusion side, we are pleased to have completed our inaugural, mandatory company-wide diversity training program. In addition, with female members comprising 44% of our Corporate Board of Directors, we are honored to have been named for the second year in a row as a ‘Champion of Board Diversity’ by the Forum of Executive Women, the Greater Philadelphia Region’s premier women’s organization. As part of our $4 million commitment to fund STEM scholarships at Historically Black Colleges and Universities, we are proud to announce that Prairie View A&M (TX) and Jackson State (MS) will become our 5th & 6th schools to enter the program. Finally, in response to the catastrophic water crisis in Jackson, Mississippi, our Ameristar Vicksburg (MS) property worked with local relief organizations to assist the City with bottled water and other much needed supplies.”
Share Repurchase Authorization Update
During the three months ended September 30, 2022, the Company repurchased 5,348,809 shares of its common stock in open market transactions for $168.0 million at an average price of $31.40 per share. During the nine months ended September 30, 2022, the Company repurchased 14,690,394 shares of its common stock in open market transactions for $510.1 million at an average price of $34.72 per share.
Subsequent to the quarter ended September 30, 2022, the Company repurchased 1,005,188 million shares of its common stock at an average price of $28.95 per share for an aggregate amount of $29.1 million. The remaining availability under our $750.0 million authorization was $211.1 million as of November 2, 2022.
Liquidity Remains Strong
Total liquidity as of September 30, 2022 was $2.7 billion inclusive of $1.7 billion in cash and cash equivalents. Traditional net debt as of the end of the quarter was $989.5 million, an increase of $103.3 million from December 31, 2021 due to a lower cash balance reflecting recent activity on our share repurchase program. Lease-adjusted net leverage as of September 30, 2022 was 4.3x compared to 4.1x as of December 31, 2021.
Additional information on PENN’s reported results, including a reconciliation of the non-GAAP results to their most comparable GAAP measures, is included in the financial tables below. The Company does not provide a reconciliation of projected Adjusted EBITDA and Adjusted EBITDAR because it is unable to predict with reasonable accuracy the value of certain adjustments that may significantly impact the Company’s results, including realized and unrealized gains and losses on equity securities, re-measurement of cash-settled stock-based awards, contingent purchase payments associated with prior acquisitions, and income tax (benefit) expense, which are dependent on future events that are out of the Company’s control or that may not be reasonably predicted.
Summary of Third Quarter Results
|
|
For the three months ended September 30, |
||||
|
(in millions, except per share data, unaudited) |
2022 |
|
2021 |
||
|
Revenues |
$ |
1,625.0 |
|
$ |
1,511.8 |
|
Net income |
$ |
123.2 |
|
$ |
86.1 |
|
|
|
|
|
||
|
Adjusted EBITDA (1) |
$ |
440.4 |
|
$ |
364.3 |
|
Rent expense associated with triple net operating leases (2) |
|
31.5 |
|
|
116.0 |
|
Adjusted EBITDAR (1) |
$ |
471.9 |
|
$ |
480.3 |
|
Payments to our REIT Landlords under Triple Net Leases (3) |
$ |
232.0 |
|
$ |
228.5 |
|
|
|
|
|
||
|
Diluted earnings per common share |
$ |
0.72 |
|
$ |
0.52 |
| (1) |
See the “Non-GAAP Financial Measures” section below for more information as well as the definitions of Adjusted EBITDA and Adjusted EBITDAR. Additionally, see below for reconciliations of these Non-GAAP financial measures to their GAAP equivalent financial measure. |
|
|
|
Consists of the operating lease components contained within our triple net master lease dated November 1, 2013 with Gaming and Leisure Properties, Inc. (Nasdaq: GLPI) (“GLPI”) and the triple net master lease assumed in connection with our acquisition of Pinnacle Entertainment, Inc. (individually referred to as the PENN Master Lease and Pinnacle Master Lease, respectively, and are collectively referred to as our “Master Leases”), as well as our individual triple net leases with GLPI for the real estate assets used in the operation of Tropicana Las Vegas Hotel and Casino, Inc. (terminated on September 26, 2022) and Hollywood Casino at The Meadows, and our individual triple net leases with VICI Properties Inc. (NYSE: VICI) (“VICI”) for the real estate assets used in the operations of Margaritaville Resort Casino and Hollywood Casino at Greektown (referred to collectively as our “triple net operating leases”). |
|
|
(2) |
On January 14, 2022, the Company and GLPI amended certain terms of the Master Leases which were concluded to be lease modifications under Accounting Standards Codification Topic 842, “Leases.” As a result of the lease modification events, only the land and building components associated with the operations of Hollywood Gaming at Dayton Raceway and Hollywood Gaming at Mahoning Valley Race Course are classified as operating leases which are recorded to rent expense, as compared to prior to the lease modification events, whereby the land components of substantially all of the Master Lease properties were classified as operating leases and recorded to rent expense. Subsequent to the lease modification events, the land components associated with the Master Lease properties are primarily classified as finance leases. |
|
| (3) |
Consists of payments made to GLPI and VICI (referred to collectively as our “REIT Landlords”) under the Master Leases, the Perryville Lease, the Meadows Lease, the Margaritaville Lease, the Greektown Lease and the Morgantown Lease. Although we collectively refer to the Master Leases, the Perryville Lease, the Meadows Lease, the Margaritaville Lease, the Greektown Lease, the Morgantown Lease and the Tropicana Lease as our “Triple Net Leases,” the rent under the Tropicana Lease was nominal prior to lease termination. |
|
PENN ENTERTAINMENT, INC. AND SUBSIDIARIES Segment Information
The Company aggregates its operations into five reportable segments: Northeast, South, West, Midwest, and Interactive.
|
|||||||||||||||
|
|
For the three months ended September 30, |
|
For the nine months ended September 30, |
||||||||||||
|
(in millions, unaudited) |
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
Revenues: |
|
|
|
|
|
|
|
||||||||
|
Northeast segment (1) |
$ |
685.4 |
|
|
$ |
672.4 |
|
|
$ |
2,028.8 |
|
|
$ |
1,895.8 |
|
|
South segment (2) |
|
329.8 |
|
|
|
318.2 |
|
|
|
1,009.8 |
|
|
|
982.3 |
|
|
West segment (3) |
|
156.5 |
|
|
|
145.7 |
|
|
|
451.2 |
|
|
|
382.7 |
|
|
Midwest segment (4) |
|
298.4 |
|
|
|
285.7 |
|
|
|
877.6 |
|
|
|
815.2 |
|
|
Interactive (5) |
|
158.7 |
|
|
|
93.0 |
|
|
|
455.1 |
|
|
|
275.3 |
|
|
Other (6) |
|
4.2 |
|
|
|
3.5 |
|
|
|
17.4 |
|
|
|
6.8 |
|
|
Intersegment eliminations (7) |
|
(8.0 |
) |
|
|
(6.7 |
) |
|
|
(23.8 |
) |
|
|
(25.6 |
) |
|
Total revenues |
$ |
1,625.0 |
|
|
$ |
1,511.8 |
|
|
$ |
4,816.1 |
|
|
$ |
4,332.5 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted EBITDAR: |
|
|
|
|
|
|
|
||||||||
|
Northeast segment (1) |
$ |
217.9 |
|
|
$ |
221.1 |
|
|
$ |
637.5 |
|
|
$ |
645.9 |
|
|
South segment (2) |
|
139.9 |
|
|
|
137.0 |
|
|
|
429.7 |
|
|
|
448.0 |
|
|
West segment (3) |
|
60.5 |
|
|
|
54.5 |
|
|
|
171.4 |
|
|
|
151.1 |
|
|
Midwest segment (4) |
|
129.4 |
|
|
|
125.8 |
|
|
|
386.2 |
|
|
|
374.0 |
|
|
Interactive (5) |
|
(49.3 |
) |
|
|
(32.0 |
) |
|
|
(80.1 |
) |
|
|
(29.5 |
) |
|
Other (6) |
|
(26.5 |
) |
|
|
(26.1 |
) |
|
|
(73.6 |
) |
|
|
(75.6 |
) |
|
Total Adjusted EBITDAR (8) |
$ |
471.9 |
|
|
$ |
480.3 |
|
|
$ |
1,471.1 |
|
|
$ |
1,513.9 |
|
| (1) |
The Northeast segment consists of the following properties: Ameristar East Chicago, Hollywood Casino at Greektown, Hollywood Casino Bangor, Hollywood Casino at Charles Town Races, Hollywood Casino Columbus, Hollywood Casino Lawrenceburg, Hollywood Casino Morgantown (opened December 22, 2021), Hollywood Casino at PENN National Race Course, Hollywood Casino Perryville (acquired July 1, 2021), Hollywood Casino Toledo, Hollywood Casino York (opened August 12, 2021), Hollywood Gaming at Dayton Raceway, Hollywood Gaming at Mahoning Valley Race Course, Marquee by PENN, Hollywood Casino at The Meadows, and Plainridge Park Casino. |
|
| (2) |
The South segment consists of the following properties: 1st Jackpot Casino, Ameristar Vicksburg, Boomtown Biloxi, Boomtown Bossier City, Boomtown New Orleans, Hollywood Casino Gulf Coast, Hollywood Casino Tunica, L’Auberge Baton Rouge, L’Auberge Lake Charles, and Margaritaville Resort Casino. |
|
| (3) |
The West segment consists of the following properties: Ameristar Black Hawk, Cactus Petes and Horseshu, M Resort, Tropicana Las Vegas Hotel and Casino (sold on September 26, 2022), and Zia Park Casino. |
|
| (4) |
The Midwest segment consists of the following properties: Ameristar Council Bluffs, Argosy Casino Alton, Argosy Casino Riverside, Hollywood Casino Aurora, Hollywood Casino Joliet, our 50% investment in Kansas Entertainment, LLC, which owns Hollywood Casino at Kansas Speedway, Hollywood Casino St. Louis, Prairie State Gaming, and River City Casino. |
|
| (5) |
The Interactive segment includes all of our iCasino and online sports betting operations, management of retail sports betting, media, and our proportionate share of earnings attributable to our equity method investment in Barstool Sports, Inc. (“Barstool”). Interactive revenues are inclusive of a tax gross-up of $63.0 million and $168.7 million for the three and nine months ended September 30, 2022, respectively, as compared to $44.0 million and $129.5 million for the three and nine months ended September 30, 2021, respectively. |
|
| (6) |
The Other category, included in the tables to reconcile the segment information to the consolidated information, consists of the Company’s stand-alone racing operations, namely Sanford-Orlando Kennel Club, Sam Houston and Valley Race Parks (the remaining 50% was acquired by PENN on August 1, 2021), the Company’s JV interests in Freehold Raceway and our management contract for Retama Park Racetrack. Expenses incurred for corporate and shared services activities that are directly attributable to a property or are otherwise incurred to support a property are allocated to each property. The Other category also includes corporate overhead costs, which consist of certain expenses, such as: payroll, professional fees, travel expenses and other general and administrative expenses that do not directly relate to or have not otherwise been allocated to a property. |
|
| (7) |
Primarily represents the elimination of intersegment revenues associated with our internally-branded retail sportsbooks, which are operated by PENN Interactive. |
|
| (8) |
As noted within the “Non-GAAP Financial Measures” section below, Adjusted EBITDAR is presented on a consolidated basis outside the financial statements solely as a valuation metric or for reconciliation purposes. |
|
PENN ENTERTAINMENT, INC. AND SUBSIDIARIES Reconciliation of Comparable GAAP Financial Measure to Adjusted EBITDA, Adjusted EBITDAR, and Adjusted EBITDAR Margin
|
|||||||||||||||
|
|
For the three months ended September 30, |
|
For the nine months ended September 30, |
||||||||||||
|
(in millions, unaudited) |
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
Net income |
$ |
123.2 |
|
|
$ |
86.1 |
|
|
$ |
200.9 |
|
|
$ |
375.7 |
|
|
Income tax (benefit) expense |
|
(182.0 |
) |
|
|
36.4 |
|
|
|
(78.1 |
) |
|
|
110.1 |
|
|
Income from unconsolidated affiliates |
|
(6.6 |
) |
|
|
(9.1 |
) |
|
|
(17.1 |
) |
|
|
(27.8 |
) |
|
Interest expense, net |
|
193.3 |
|
|
|
144.9 |
|
|
|
547.7 |
|
|
|
418.6 |
|
|
Other (income) expenses |
|
8.8 |
|
|
|
(19.2 |
) |
|
|
77.7 |
|
|
|
(43.1 |
) |
|
Operating income |
|
136.7 |
|
|
|
239.1 |
|
|
|
731.1 |
|
|
|
833.5 |
|
|
Stock-based compensation |
|
13.6 |
|
|
|
8.5 |
|
|
|
45.1 |
|
|
|
21.9 |
|
|
Cash-settled stock-based awards variance (1) |
|
(3.8 |
) |
|
|
5.2 |
|
|
|
(16.2 |
) |
|
|
14.3 |
|
|
Loss (gain) on disposal of assets |
|
(0.2 |
) |
|
|
0.3 |
|
|
|
7.0 |
|
|
|
0.1 |
|
|
Contingent purchase price |
|
0.1 |
|
|
|
0.6 |
|
|
|
(0.9 |
) |
|
|
1.9 |
|
|
Pre-opening expenses (2) |
|
0.5 |
|
|
|
1.6 |
|
|
|
4.1 |
|
|
|
2.8 |
|
|
Depreciation and amortization |
|
148.7 |
|
|
|
83.7 |
|
|
|
417.2 |
|
|
|
246.9 |
|
|
Impairment losses (3) |
|
104.6 |
|
|
|
— |
|
|
|
104.6 |
|
|
|
— |
|
|
Insurance recoveries, net of deductible charges |
|
(1.9 |
) |
|
|
— |
|
|
|
(10.7 |
) |
|
|
— |
|
|
Income from unconsolidated affiliates |
|
6.6 |
|
|
|
9.1 |
|
|
|
17.1 |
|
|
|
27.8 |
|
|
Non-operating items of equity method investments (4) |
|
2.6 |
|
|
|
3.0 |
|
|
|
4.7 |
|
|
|
6.0 |
|
|
Other expenses (2)(5) |
|
32.9 |
|
|
|
13.2 |
|
|
|
48.4 |
|
|
|
15.8 |
|
|
Adjusted EBITDA |
|
440.4 |
|
|
|
364.3 |
|
|
|
1,351.5 |
|
|
|
1,171.0 |
|
|
Rent expense associated with triple net operating leases |
|
31.5 |
|
|
|
116.0 |
|
|
|
119.6 |
|
|
|
342.9 |
|
|
Adjusted EBITDAR |
$ |
471.9 |
|
|
$ |
480.3 |
|
|
$ |
1,471.1 |
|
|
$ |
1,513.9 |
|
|
Net income margin |
|
7.6 |
% |
|
|
5.7 |
% |
|
|
4.2 |
% |
|
|
8.7 |
% |
|
Adjusted EBITDAR margin |
|
29.0 |
% |
|
|
31.8 |
% |
|
|
30.5 |
% |
|
|
34.9 |
% |
| (1) |
Our cash-settled stock-based awards are adjusted to fair value each reporting period based primarily on the price of the Company’s common stock. As such, significant fluctuations in the price of the Company’s common stock during any reporting period could cause significant variances to budget on cash-settled stock-based awards. |
|
| (2) |
During the first quarter of 2021, acquisition costs were included within pre-opening and acquisition costs. Beginning with the quarter ended June 30, 2021, acquisition costs are presented as part of other expenses. |
|
| (3) |
Amount primarily relates to a $102.8 million impairment charge in the Northeast segment. |
|
| (4) | Consists principally of interest expense, net, income taxes, depreciation and amortization, and stock-based compensation expense associated with Barstool and our Kansas Entertainment, LLC joint venture. We record our portion of Barstool Sports’ net income or loss, including adjustments to arrive at Adjusted EBITDAR, one quarter in arrears. | |
| (5) | Consists of non-recurring acquisition and transaction costs, and finance transformation costs associated with the implementation of our new Enterprise Resource Management system. |
|
PENN ENTERTAINMENT, INC. AND SUBSIDIARIES Consolidated Statements of Operations |
|||||||||||||||
|
|
For the three months ended September 30, |
|
For the nine months ended September 30, |
||||||||||||
|
(in millions, except per share data, unaudited) |
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
Revenues |
|
|
|
|
|
|
|
||||||||
|
Gaming |
$ |
1,317.5 |
|
|
$ |
1,256.2 |
|
|
$ |
3,934.3 |
|
|
$ |
3,643.7 |
|
|
Food, beverage, hotel and other |
|
307.5 |
|
|
|
255.6 |
|
|
|
881.8 |
|
|
|
688.8 |
|
|
Total revenues |
|
1,625.0 |
|
|
|
1,511.8 |
|
|
|
4,816.1 |
|
|
|
4,332.5 |
|
|
Operating expenses |
|
|
|
|
|
|
|
||||||||
|
Gaming |
|
757.9 |
|
|
|
652.4 |
|
|
|
2,158.1 |
|
|
|
1,801.1 |
|
|
Food, beverage, hotel and other |
|
199.2 |
|
|
|
160.1 |
|
|
|
557.9 |
|
|
|
431.8 |
|
|
General and administrative |
|
277.9 |
|
|
|
376.5 |
|
|
|
847.2 |
|
|
|
1,019.2 |
|
|
Depreciation and amortization |
|
148.7 |
|
|
|
83.7 |
|
|
|
417.2 |
|
|
|
246.9 |
|
|
Impairment losses |
|
104.6 |
|
|
|
— |
|
|
|
104.6 |
|
|
|
— |
|
|
Total operating expenses |
|
1,488.3 |
|
|
|
1,272.7 |
|
|
|
4,085.0 |
|
|
|
3,499.0 |
|
|
Operating income |
|
136.7 |
|
|
|
239.1 |
|
|
|
731.1 |
|
|
|
833.5 |
|
|
Other income (expenses) |
|
|
|
|
|
|
|
||||||||
|
Interest expense, net |
|
(193.3 |
) |
|
|
(144.9 |
) |
|
|
(547.7 |
) |
|
|
(418.6 |
) |
|
Income from unconsolidated affiliates |
|
6.6 |
|
|
|
9.1 |
|
|
|
17.1 |
|
|
|
27.8 |
|
|
Other |
|
(8.8 |
) |
|
|
19.2 |
|
|
|
(77.7 |
) |
|
|
43.1 |
|
|
Total other expenses |
|
(195.5 |
) |
|
|
(116.6 |
) |
|
|
(608.3 |
) |
|
|
(347.7 |
) |
|
Income (loss) before income taxes |
|
(58.8 |
) |
|
|
122.5 |
|
|
|
122.8 |
|
|
|
485.8 |
|
|
Income tax benefit (expense) |
|
182.0 |
|
|
|
(36.4 |
) |
|
|
78.1 |
|
|
|
(110.1 |
) |
|
Net income |
|
123.2 |
|
|
|
86.1 |
|
|
|
200.9 |
|
|
|
375.7 |
|
|
Less: Net loss attributable to non-controlling interest |
|
0.3 |
|
|
|
— |
|
|
|
0.4 |
|
|
|
0.1 |
|
|
Net income attributable to PENN Entertainment |
$ |
123.5 |
|
|
$ |
86.1 |
|
|
$ |
201.3 |
|
|
$ |
375.8 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Earnings per share: |
|
|
|
|
|
|
|
||||||||
|
Basic earnings per share |
$ |
0.78 |
|
|
$ |
0.55 |
|
|
$ |
1.23 |
|
|
$ |
2.40 |
|
|
Diluted earnings per share |
$ |
0.72 |
|
|
$ |
0.52 |
|
|
$ |
1.15 |
|
|
$ |
2.24 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted-average common shares outstanding—basic |
|
157.6 |
|
|
|
156.1 |
|
|
|
163.5 |
|
|
|
155.9 |
|
|
Weighted-average common shares outstanding—diluted |
|
173.0 |
|
|
|
172.7 |
|
|
|
179.0 |
|
|
|
172.7 |
|
Contacts
Felicia Hendrix
Chief Financial Officer
PENN Entertainment
610-373-2400
Joseph N. Jaffoni, Richard Land
JCIR
212-835-8500 or [email protected]
