Retail Operations Benefitting from Strong Volumes and Meaningful Database Growth
Interactive Segment Continues to Deliver Disciplined Growth, Highlighted by the Successful Launch of the Barstool Sportsbook in Louisiana and theScore Bet in Ontario
Raising 2022 Full Year Revenue and Adjusted EBITDAR Guidance
Repurchased $175.1 Million of Common Stock Under Share Repurchase Authorization
WYOMISSING, Pa.--(BUSINESS WIRE)--Penn National Gaming, Inc. (Nasdaq: PENN) (“Penn” or the “Company”) today reported financial results for the three months ended March 31, 2022.
2022 First Quarter Financial Highlights:
For further information, the Company has posted a presentation to its website regarding the first quarter highlights and accomplishments, which can be found here.
Jay Snowden, President and Chief Executive Officer, commented: “Penn National Gaming generated record first quarter results with revenues of $1.56 billion and Adjusted EBITDAR of $494.7 million. These results reflect our continued progress in meeting our strategic objectives. We are growing our active mychoice® database and are seeing early benefits from our technology investments. We are also driving momentum at our Interactive Segment with ongoing sports betting and iCasino growth in the U.S., and the successful launch of mobile sports betting and iCasino in Ontario on April 4th on theScore’s proprietary player account management system (“PAM”) and bonusing engine. Based on the strength of our first quarter performance and our outlook for the remainder of the year, we are increasing our prior 2022 revenue and Adjusted EBITDAR guidance range to $6.15 billion to $6.55 billion and $1.875 billion to $2.00 billion, respectively.
Strong Property Level Performance Across all Segments Supported by Active Database Growth
Property level highlights1:
“We remain encouraged by the ongoing visitation from younger demographics and are focused on continuing to reimagine our properties and offerings to enhance the entertainment appeal to this steadily growing segment of consumers,” said Mr. Snowden. “Our database grew across all worth segments by 14%, led by 28% year-over-year growth in our VIP segment and 11% in our core segments driven by our new online and retail sportsbook offerings and our recently opened Hollywood Casino York and Morgantown casinos in Pennsylvania. We are also starting to see the early benefits of our investment in our cashless, cardless and contactless technology (the “3C’s”), which powers our mywallet experience. This technology is now live at nine properties in three states and has increased the value of the guest in terms of visitation frequency and time on device. We plan to introduce the 3C’s in an additional 14 properties in eight states over the next two quarters pending regulatory approval.”
Disciplined Growth for our Interactive Segment
Interactive Segment highlights:
“The Interactive Segment generated meaningful growth year over year and our profitability objectives are unchanged. Our launches in Louisiana and Ontario have demonstrated the value of both our omni-channel strategy and our investment in new technology. In Louisiana, we benefited from both our best-in-class regional casinos and grass-roots marketing by Barstool Sports personalities. In Ontario, we successfully launched theScore Bet mobile app on April 4th to impressive demand. Additionally, theScore Bet launched on theScore’s cutting edge PAM and bonus engine, which allows us to provide highly-customized features and seamless integration into theScore media app. Although early, we have been very encouraged by the results. In Q3 2022, we expect to transition theScore Bet in Ontario to theScore’s proprietary risk and trading platform, which will allow us to significantly bolster the product’s features and capabilities, including expanded betting markets and exclusive bet features. We also remain on track to transition the Barstool Sportsbook to theScore’s PAM and trading platform in Q3 2023, which will provide meaningful cost and revenue synergy opportunities.”
________________________ 1 Property level consists of retail operating segments which are composed of the operating results of our Northeast, South, West, and Midwest reportable segments.
Media Business Provides Solid Platform for Additional Monetization Opportunities
Mr. Snowden continued, “Our media business is building momentum, as theScore grew revenue 42.0% year over year in Q1 2022 and continues to garner high levels of engagement. Barstool Sports Inc. has also continued to expand its audience and reach while pursuing new growth opportunities. On March 18th, the second stand-alone Barstool sports bar opened in Philadelphia to high demand. In addition, on May 7th, Barstool will broadcast an alternative commentary to the Canelo v. Bivol boxing match on DAZN, representing another extension of the Barstool brand into live sporting events. Looking forward, we believe there is upside for the media business as we begin to realize the benefits of cross promotion with Barstool Sports and additional monetization opportunities.”
ESG – Continuing to Care for our People, our Communities and our Planet
On April 26th, the Company released its 2021 Corporate Social Responsibility Report, providing insights into Penn National Gaming’s longstanding commitment to Care for our People, our Communities and the Planet. Highlights include the launch of a $4 million STEM Scholarship Fund and internship program at historically black colleges and universities in states in which Penn operates. Penn also contributed more than $7 million to help fund COVID-19 and hurricane relief efforts, in addition to supporting worthwhile charities and civic organizations in the communities in which it operates — a two-fold increase over 2019.
More recently, on March 23rd, Penn executives hosted Louisiana Governor John Bel Edwards and other dignitaries at the annual Metanoia Gala at L’Auberge Casino & Hotel in Baton Rouge to raise funds to support adolescent victims of human trafficking. Penn also held several events in appreciation of Woman’s History month, including a “Women Behind theScore Bet” virtual panel to recognize the critical role our female team members played in the development of theScore Bet app.
Share Repurchase Authorization Update
During the three months ended March 31, 2022, the Company repurchased 3,802,408 shares of its common stock in open market transactions for $175.1 million at an average price of $46.04 per share. There is $574.9 million remaining under our $750.0 million authorization.
Liquidity Remains Strong
Total liquidity as of March 31, 2022 was $2.48 billion inclusive of $1.81 billion in cash and cash equivalents. Total net debt as of the end of the quarter was $923.5 million, an increase of $37.3 million from December 31, 2021 due to a lower cash balance as we executed on our share repurchase program. Lease-adjusted net leverage as of March 31, 2022 was 4.04x compared to 4.10x as of December 31, 2021.
On May 3, 2022, the Company entered into a Second Amended and Restated Credit Agreement with its various lenders (the “Second Amended and Restated Credit Agreement”). The Second Amended and Restated Credit Agreement provides for a $1.0 billion revolving credit facility, undrawn at close, (the “Revolving Credit Facility”), a five-year $550.0 million term loan A facility (the “Term Loan A”) and a seven-year $1.0 billion term loan B facility (the “Term Loan B”) facilities (together, the “Credit Facilities”). The proceeds from the Credit Facilities were used to repay the existing term loan A facility and term loan B-1 facility balances.
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 expense (benefit), which are dependent on future events that are out of the Company’s control or that may not be reasonably predicted.
Summary of First Quarter Results
|
For the three months ended March 31, |
|||||
(in millions, except per share data, unaudited) |
2022 |
|
2021 |
|||
Revenues |
$ |
1,564.2 |
|
$ |
1,274.9 |
|
Net income |
$ |
51.6 |
|
$ |
90.9 |
|
|
|
|
|
|||
Adjusted EBITDA (1) |
$ |
434.6 |
|
$ |
336.6 |
|
Rent expense associated with triple net operating leases (2) |
|
60.1 |
|
|
110.4 |
|
Adjusted EBITDAR (1) |
$ |
494.7 |
|
$ |
447.0 |
|
Payments to our REIT Landlords under Triple Net Leases (3) |
$ |
229.3 |
|
$ |
226.0 |
|
|
|
|
|
|||
Diluted earnings per common share |
$ |
0.29 |
|
$ |
0.55 |
(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. |
|
(2) |
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. and Hollywood Casino at Meadows Racetrack, and our individual triple net leases with VICI Properties Inc. (NYSE: VICI) ("VICI") for the real estate assets used in the operations of Margaritaville Casino Resort and Greektown Casino-Hotel (referred to collectively as our “triple net operating leases”). |
|
On January 14, 2022, the Company and GLPI amended certain terms of Master Leases which was concluded to be a lease modification under Accounting Standards Codification Topic 842, “Leases.” As a result of 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 is 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 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 (effective July 1, 2021), 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 is nominal. |
|
PENN NATIONAL GAMING, INC. AND SUBSIDIARIES |
||||||||
Segment Information |
||||||||
The Company aggregates its properties into five reportable segments: Northeast, South, West, Midwest, and Interactive. |
||||||||
|
For the three months ended March 31, |
|||||||
(in millions, unaudited) |
2022 |
|
2021 |
|||||
Revenues: |
|
|
|
|||||
Northeast segment (1) |
$ |
658.5 |
|
|
$ |
570.9 |
|
|
South segment (2) |
|
341.4 |
|
|
|
295.9 |
|
|
West segment (3) |
|
140.9 |
|
|
|
96.6 |
|
|
Midwest segment (4) |
|
282.9 |
|
|
|
234.7 |
|
|
Interactive (5) |
|
141.5 |
|
|
|
86.3 |
|
|
Other (6) |
|
7.3 |
|
|
|
1.6 |
|
|
Intersegment eliminations (7) |
|
(8.3 |
) |
|
|
(11.1 |
) |
|
Total revenues |
$ |
1,564.2 |
|
|
$ |
1,274.9 |
|
|
|
|
|
|
|||||
Adjusted EBITDAR: |
|
|
|
|||||
Northeast segment (1) |
$ |
205.2 |
|
|
$ |
193.2 |
|
|
South segment (2) |
|
146.5 |
|
|
|
133.9 |
|
|
West segment (3) |
|
51.2 |
|
|
|
35.2 |
|
|
Midwest segment (4) |
|
125.5 |
|
|
|
106.0 |
|
|
Interactive (5) |
|
(10.0 |
) |
|
|
1.3 |
|
|
Other (6) |
|
(23.7 |
) |
|
|
(22.6 |
) |
|
Total Adjusted EBITDAR (8) |
$ |
494.7 |
|
|
$ |
447.0 |
|
(1) |
The Northeast segment consists of the following properties: Ameristar East Chicago, Greektown Casino-Hotel, 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 Meadows Racetrack, 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, 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, which owns Hollywood Casino at Kansas Speedway; Hollywood Casino St. Louis; Prairie State Gaming; and River City Casino. |
|
(5) |
The Interactive segment includes Penn Interactive, which operates social gaming, our internally-branded retail sportsbooks, iGaming and our Barstool Sportsbook mobile app, as well as the operating results of theScore, which was acquired on October 19, 2021. Interactive revenues are inclusive of a tax gross-up of $50.3 million and $39.4 million for the three months ended March 31, 2022 and 2021, respectively. In addition, Adjusted EBITDAR of the Interactive segment includes our proportionate share of the net income or loss of Barstool Sports, Inc. after adding back our share of non-operating items (such as interest expense, net; income taxes; depreciation and amortization; and stock-based compensation expense). |
|
(6) |
The Other category 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 NATIONAL GAMING, INC. AND SUBSIDIARIES Reconciliation of Comparable GAAP Financial Measure to Adjusted EBITDA, Adjusted EBITDAR, and Adjusted EBITDAR Margin |
||||||||
|
For the three months ended March 31, |
|||||||
(in millions, unaudited) |
2022 |
|
2021 |
|||||
Net income |
$ |
51.6 |
|
|
$ |
90.9 |
|
|
Income tax expense |
|
47.6 |
|
|
|
20.6 |
|
|
Income from unconsolidated affiliates |
|
(8.7 |
) |
|
|
(9.6 |
) |
|
Interest expense, net |
|
160.8 |
|
|
|
135.7 |
|
|
Other (income) expenses |
|
40.7 |
|
|
|
(21.1 |
) |
|
Operating income |
|
292.0 |
|
|
|
216.5 |
|
|
Stock-based compensation |
|
17.0 |
|
|
|
4.2 |
|
|
Cash-settled stock-based awards variance |
|
(2.9 |
) |
|
|
21.5 |
|
|
Gain on disposal of assets |
|
(0.1 |
) |
|
|
(0.1 |
) |
|
Contingent purchase price |
|
(0.1 |
) |
|
|
0.1 |
|
|
Pre-opening expenses (1) |
|
1.5 |
|
|
|
1.6 |
|
|
Depreciation and amortization |
|
118.2 |
|
|
|
81.3 |
|
|
Insurance recoveries, net of deductible charges |
|
(8.8 |
) |
|
|
— |
|
|
Income from unconsolidated affiliates |
|
8.7 |
|
|
|
9.6 |
|
|
Non-operating items of equity method investments (2) |
|
1.8 |
|
|
|
1.6 |
|
|
Other expenses (1) (3) |
|
7.3 |
|
|
|
0.3 |
|
|
Adjusted EBITDA |
|
434.6 |
|
|
|
336.6 |
|
|
Rent expense associated with triple net operating leases |
|
60.1 |
|
|
|
110.4 |
|
|
Adjusted EBITDAR |
$ |
494.7 |
|
|
$ |
447.0 |
|
|
Net income margin |
|
3.3 |
% |
|
|
7.1 |
% |
|
Adjusted EBITDAR margin |
|
31.6 |
% |
|
|
35.1 |
% |
(1) |
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. |
|
(2) |
Consists principally of interest expense, net; income taxes; depreciation and amortization; and stock-based compensation expense associated with Barstool Sports, Inc. and our Kansas Entertainment, LLC joint venture. We record our portion of Barstool Sports, Inc.'s net income or loss, including adjustments to arrive at Adjusted EBITDAR, one quarter in arrears. |
|
(3) |
Consists of non-recurring acquisition and transaction costs and finance transformation costs associated with the implementation of our new Enterprise Resource Management system. |
|
PENN NATIONAL GAMING, INC. AND SUBSIDIARIES Consolidated Statements of Operations |
||||||||
|
For the three months ended March 31, |
|||||||
(in millions, except per share data, unaudited) |
2022 |
|
2021 |
|||||
Revenues |
|
|
|
|||||
Gaming |
$ |
1,291.2 |
|
|
$ |
1,082.0 |
|
|
Food, beverage, hotel and other |
|
273.0 |
|
|
|
192.9 |
|
|
Total revenues |
|
1,564.2 |
|
|
|
1,274.9 |
|
|
Operating expenses |
|
|
|
|||||
Gaming |
|
686.6 |
|
|
|
527.8 |
|
|
Food, beverage, hotel and other |
|
171.9 |
|
|
|
123.1 |
|
|
General and administrative |
|
295.5 |
|
|
|
326.2 |
|
|
Depreciation and amortization |
|
118.2 |
|
|
|
81.3 |
|
|
Total operating expenses |
|
1,272.2 |
|
|
|
1,058.4 |
|
|
Operating income |
|
292.0 |
|
|
|
216.5 |
|
|
Other income (expenses) |
|
|
|
|||||
Interest expense, net |
|
(160.8 |
) |
|
|
(135.7 |
) |
|
Income from unconsolidated affiliates |
|
8.7 |
|
|
|
9.6 |
|
|
Other |
|
(40.7 |
) |
|
|
21.1 |
|
|
Total other expenses |
|
(192.8 |
) |
|
|
(105.0 |
) |
|
Income before income taxes |
|
99.2 |
|
|
|
111.5 |
|
|
Income tax expense |
|
(47.6 |
) |
|
|
(20.6 |
) |
|
Net income |
|
51.6 |
|
|
|
90.9 |
|
|
Less: Net loss attributable to non-controlling interest |
|
0.1 |
|
|
|
0.1 |
|
|
Net income attributable to Penn National Gaming |
$ |
51.7 |
|
|
$ |
91.0 |
|
|
|
|
|
|
|||||
Earnings per share: |
|
|
|
|||||
Basic earnings per share |
$ |
0.31 |
|
|
$ |
0.58 |
|
|
Diluted earnings per share |
$ |
0.29 |
|
|
$ |
0.55 |
|
|
|
|
|
|
|||||
Weighted-average common shares outstanding—basic |
|
168.2 |
|
|
|
155.7 |
|
|
Weighted-average common shares outstanding—diluted |
|
184.2 |
|
|
|
172.8 |
|
|
Selected Financial Information |
||||||||
Balance Sheet Data |
||||||||
(in millions, unaudited) |
March 31, 2022 |
|
December 31, 2021 |
|||||
Cash and cash equivalents |
$ |
1,805.5 |
|
|
$ |
1,863.9 |
|
|
|
|
|
|
|||||
Bank debt |
$ |
1,543.2 |
|
|
$ |
1,563.7 |
|
|
Notes (1) |
|
1,130.5 |
|
|
|
1,130.5 |
|
|
Other long-term obligations (2) |
|
55.3 |
|
|
|
55.9 |
|
|
Total traditional debt |
|
2,729.0 |
|
|
|
2,750.1 |
|
|
Financing obligation (3) |
|
96.6 |
|
|
|
90.4 |
|
|
Less: Debt discounts and debt issuance costs (4) |
|
(31.8 |
) |
|
|
(103.7 |
) |
|
|
$ |
2,793.8 |
|
|
$ |
2,736.8 |
|
|
|
|
|
|
|||||
Traditional net debt (5) |
$ |
923.5 |
|
|
$ |
886.2 |
|
(1) |
Inclusive of our 5.625% Notes due 2027, 4.125% Notes due 2029 and our 2.75% Convertible Notes due 2026. |
|
(2) |
Other long-term obligations as of March 31, 2022 primarily includes $44.5 million related to relocation fees due for both Hollywood Gaming at Dayton Raceway and Hollywood Gaming at Mahoning Valley Race Course, and $10.8 million related to our repayment obligation on a hotel and event center located near Hollywood Casino Lawrenceburg. |
|
(3) |
Represents cash proceeds received and non-cash interest on certain claims of which the principal repayment is contingent and classified as a financing obligation under Accounting Standards Codification Topic 470, “Debt.” |
|
(4) |
On January 1, 2022, the Company adopted ASU 2020-06, which resulted in a net $71.7 million reclassification of the equity component originally recognized as a debt discount under the previously bifurcated cash conversion feature of the 2.75% convertible senior notes due May 2026. Under ASU 2020-06, bifurcation for a cash conversion feature is no longer permitted. |
|
(5) |
Traditional net debt in the table above is calculated as “Total traditional debt,” which is the principal amount of debt outstanding (excludes the financing obligation associated with cash proceeds received and non-cash interest on certain claims of which the principal repayment is contingent) less “Cash and cash equivalents.” |
|
Cash Flow Data |
|||||||
The table below summarizes certain cash expenditures incurred by the Company. |
|
|
|||||
|
For the three months ended March 31, |
||||||
(in millions, unaudited) |
2022 |
|
2021 |
||||
Cash payments to our REIT Landlords under Triple Net Leases |
$ |
229.3 |
|
$ |
226.0 |
|
|
Cash payments (refunds) related to income taxes, net |
$ |
1.0 |
|
$ |
(8.8 |
) |
|
Cash paid for interest on traditional debt |
$ |
30.8 |
|
$ |
25.8 |
|
|
Capital expenditures |
$ |
65.6 |
|
$ |
25.7 |
|
|
Non-GAAP Financial Measures
The Non-GAAP Financial Measures used in this press release include Adjusted EBITDA, Adjusted EBITDAR, and Adjusted EBITDAR margin. These non-GAAP financial measures should not be considered a substitute for, nor superior to, financial results and measures determined or calculated in accordance with GAAP.
We define Adjusted EBITDA as earnings before interest expense, net; income taxes; depreciation and amortization; stock-based compensation; debt extinguishment and financing charges; impairment losses; insurance recoveries, net of deductible charges; changes in the estimated fair value of our contingent purchase price obligations; gain or loss on disposal of assets; the difference between budget and actual expense for cash-settled stock-based awards; pre-opening expenses; and other. Adjusted EBITDA is inclusive of income or loss from unconsolidated affiliates, with our share of non-operating items (such as interest expense, net; income taxes; depreciation and amortization; and stock-based compensation expense) added back for Barstool Sports, Inc. (“Barstool Sports”) and our Kansas Entertainment, LLC joint venture. Adjusted EBITDA is inclusive of rent expense associated with our triple net operating leases (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., our individual triple net leases with GLPI for the real estate assets used in the Operation of Tropicana Las Vegas Hotel and Casino, Inc. and Hollywood Casino at Meadows Racetrack, and our individual triple net leases with VICI Properties Inc. (NYSE: VICI) (“VICI”) for the real estate assets used in the operations of Margaritaville Casino Resort and Greektown Casino-Hotel). Although Adjusted EBITDA includes rent expense associated with our triple net operating leases, we believe Adjusted EBITDA is useful as a supplemental measure in evaluating the performance of our consolidated results of operations.
Adjusted EBITDA has economic substance because it is used by management as a performance measure to analyze the performance of our business, and is especially relevant in evaluating large, long-lived casino-hotel projects because it provides a perspective on the current effects of operating decisions separated from the substantial non-operational depreciation charges and financing costs of such projects. We present Adjusted EBITDA because it is used by some investors and creditors as an indicator of the strength and performance of ongoing business operations, including our ability to service debt, and to fund capital expenditures, acquisitions and operations. These calculations are commonly used as a basis for investors, analysts and credit rating agencies to evaluate and compare operating performance and value companies within our industry. In order to view the operations of their casinos on a more stand-alone basis, gaming companies, including us, have historically excluded from their Adjusted EBITDA calculations of certain corporate expenses that do not relate to the management of specific casino properties. However, Adjusted EBITDA 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 commonly used measure of performance in the gaming industry and that it is considered by many to be a key indicator of the Company’s operating results.
We define Adjusted EBITDAR as Adjusted EBITDA (as defined above) plus rent expense associated with triple net operating leases (which is a normal, recurring cash operating expense necessary to operate our business). Adjusted EBITDAR is presented on a consolidated basis outside the financial statements solely as a valuation metric. Management believes that Adjusted EBITDAR is an additional metric traditionally used by analysts in valuing gaming companies subject to triple net leases since it eliminates the effects of variability in leasing methods and capital structures. This metric is included as supplemental disclosure because (i) we believe Adjusted EBITDAR is traditionally used by gaming operator analysts and investors to determine the equity value of gaming operators and (ii) Adjusted EBITDAR is one of the metrics used by other financial analysts in valuing our business. We believe Adjusted EBITDAR is useful for equity valuation purposes because (i) its calculation isolates the effects of financing real estate; and (ii) using a multiple of Adjusted EBITDAR to calculate enterprise value allows for an adjustment to the balance sheet to recognize estimated liabilities arising from operating leases related to real estate. However, Adjusted EBITDAR when presented on a consolidated basis is not a financial measure in accordance with GAAP, and should not be viewed as a measure of overall operating performance or considered in isolation or as an alternative to net income because it excludes the rent expense associated with our triple net operating leases and is provided for the limited purposes referenced herein. Adjusted EBITDAR margin is defined as Adjusted EBITDAR on a consolidated basis (as defined above) divided by revenues on a consolidated basis. Adjusted EBITDAR margin is presented on a consolidated basis outside the financial statements solely as a valuation metric.
Each of these non-GAAP financial measures is not calculated in the same manner by all companies and, accordingly, may not be an appropriate measure of comparing performance among different companies. See the table above, which presents reconciliations of these measures to the GAAP equivalent financial measures.
Management Presentation, Conference Call, Webcast and Replay Details
Penn is hosting a conference call and simultaneous webcast at 9:00 am ET today, both of which are open to the general public. During the call, management will review an earnings presentation that can be accessed at https://pennnationalgaming.gcs-web.com/events-and-presentations/presentations.
The conference call number is 212-231-2939; please call five minutes in advance to ensure that you are connected prior to the presentation. Interested parties may also access the live call at www.pngaming.com; allow 15 minutes to register and download and install any necessary software. Questions and answers will be reserved for call-in analysts and investors. A replay of the call can be accessed for thirty days 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 “Investors” section (select link for “Press Releases”).
About Penn National Gaming
Penn National Gaming, Inc. (Nasdaq: PENN) is North America’s leading provider of integrated entertainment, sports content and casino gaming experiences. A member of the S&P 500®, Penn operates 44 properties in 20 states, online sports betting in 13 jurisdictions and iCasino in five under a portfolio of well-recognized brands including Hollywood Casino®, L’Auberge®, Barstool Sportsbook® and theScore Bet®. Penn’s highly differentiated strategy, which is focused on organic cross-sell opportunities, is reinforced by its investments in owned technology, including a state-of-the-art media and betting platform and an in-house iCasino content studio. The Company’s portfolio is further bolstered by its industry-leading mychoice customer loyalty program, which offers its over 25 million members a unique set of rewards and experiences across business channels. Penn is deeply committed to fostering a culture that welcomes a diverse set of customers and dedicated team members. The Company has been consistently ranked in the top two as “Employer of First Choice” over the last nine years in the Bristol Associates-Spectrum Gaming’s Executive Satisfaction Survey. In addition, as a long-standing good corporate citizen, Penn is also committed to being a trusted and valued member of its communities and a responsible steward of our finite natural resources.
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified using forward-looking terminology such as “expects,” “believes,” “estimates,” “projects,” “intends,” “plans,” “goal,” “seeks,” “may,” “will,” “should,” or “anticipates” or the negative or other variations of these or similar words, or by discussions of future events, strategies or risks and uncertainties. Specifically, forward-looking statements include, but are not limited to, statements regarding: the Company's expectations of, and guidance regarding, future results of operations and financial condition, including with respect to its 2022 net revenues and Adjusted EBITDAR guidance ranges; the assumptions provided regarding the guidance, including the scale and timing of the Company’s product and technology investments; the Company’s anticipated share repurchases; the Company's expectations with regard to results, and the impact of competition, in online sports betting, iGaming and retail/mobile sportsbooks, including the expected results of theScore Bet in Ontario; the Company's launch of its Interactive segment's products in new jurisdictions and enhancements to existing Interactive segment products, including the transition to theScore's proprietary risk and trading platform in Ontario, the integration of the Barstool Sportsbook into theScore mobile app in the U.S., and the migration of the Barstool Sportsbook to theScore's player account management trading platforms; the Company's expectations with regard to its future investments in Barstool Sports and the future success of its products; the Company's expectations with respect to the integration and synergies related to the Company's integration of theScore and Barstool Sports; The Company’s expectations with respect to the ongoing introduction and the potential benefits of the cashless, cardless and contactless (the “3C’s”) technology; the Company's development projects; and the timing, cost and expected impact of planned capital expenditures on the Company's results of operations.
Such statements are all subject to risks, uncertainties and changes in circumstances that could significantly affect the Company’s future financial results and business. Accordingly, the Company cautions that the forward-looking statements contained herein are qualified by important factors that could cause actual results to differ materially from those reflected by such statements. Such factors include: the effects of economic conditions and market conditions in the markets in which the Company operates; competition with other entertainment, sports content, and casino gaming experiences; the timing, cost and expected impact of product and technology investments; risks relating to international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions; and additional risks and uncertainties described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, each as filed with the U.S. Securities and Exchange Commission. The Company does not intend to update publicly any forward-looking statements except as required by law. Considering these risks, uncertainties and assumptions, the forward-looking events discussed in this press release may not occur.
Розничные операции Выигрывают от высоких объемов и значительного роста базы данных
Интерактивный сегмент продолжает демонстрировать Дисциплинированный рост, о чем свидетельствует Успешный запуск букмекерских контор Barstool в Луизиане и theScore Bet в Онтарио
Увеличение выручки за весь 2022 год и Скорректированный прогноз по EBITDA
Выкупил Обыкновенные акции на сумму 175,1 миллиона долларов В соответствии с Разрешением на обратный выкуп акций
ВАЙОМИССИНГ, Пенсильвания. - (ДЕЛОВАЯ ПЕРЕПИСКА) -Penn National Gaming, Inc. (Nasdaq: PENN) (“Penn” или “Компания”) сегодня сообщила о финансовых результатах за три месяца, закончившихся 31 марта 2022 года.
Основные финансовые показатели Первого квартала 2022 года:
Для получения дополнительной информации Компания разместила на своем веб-сайте презентацию об основных результатах и достижениях за первый квартал, с которой можно ознакомиться здесь.
Джей Сноуден, президент и главный исполнительный директор, прокомментировал: “Penn National Gaming продемонстрировал рекордные результаты за первый квартал с выручкой в размере 1,56 миллиарда долларов и скорректированным показателем EBITDA в размере 494,7 миллиона долларов. Эти результаты отражают наш постоянный прогресс в достижении наших стратегических целей. Мы расширяем нашу активную базу данных mychoice® и видим первые выгоды от наших инвестиций в технологии. Мы также набираем обороты в нашем Интерактивном сегменте благодаря постоянному росту ставок на спорт и iCasino в США, а также успешному запуску мобильных ставок на спорт и iCasino в Онтарио 4 апреля с использованием собственной системы управления учетными записями игроков theScore (“PAM”) и механизма начисления бонусов. Основываясь на сильных результатах нашего первого квартала и наших прогнозах на оставшуюся часть года, мы увеличиваем нашу выручку до 2022 года и скорректированный прогнозный диапазон EBITDA до 6,15 млрд долл. до 6,55 млрд долл. и 1,875 млрд долл. до 2,00 млрд долл. соответственно.
Высокая производительность на уровне собственности Во всех Сегментах, Поддерживаемая Активным Ростом Базы Данных
Выделение уровня свойства1:
“Мы по-прежнему воодушевлены постоянным посещением со стороны молодых людей и сосредоточены на продолжении переосмысления наших объектов и предложений, чтобы повысить привлекательность развлечений для этого постоянно растущего сегмента потребителей”, - сказал г-н Сноуден. “Наша база данных выросла во всех сегментах worth на 14%, во главе с ростом на 28% в годовом исчислении в нашем VIP-сегменте и на 11% в наших основных сегментах, что обусловлено нашими новыми предложениями онлайн- и розничных букмекерских контор, а также нашими недавно открытыми казино Hollywood Casino York и Morgantown в Пенсильвании. Мы также начинаем видеть первые выгоды от наших инвестиций в наши безналичные, безналичные и бесконтактные технологии (“3C's”), которые улучшают наш опыт работы с mywallet. Эта технология теперь доступна в девяти объектах недвижимости в трех штатах и увеличила ценность гостя с точки зрения частоты посещений и времени на устройстве. Мы планируем ввести 3C еще в 14 объектах недвижимости в восьми штатах в течение следующих двух кварталов в ожидании одобрения регулирующих органов ”.
Дисциплинированный рост нашего Интерактивного сегмента
Основные моменты интерактивного сегмента:
“Интерактивный сегмент продемонстрировал значительный рост из года в год, и наши цели по прибыльности остаются неизменными. Наши запуски в Луизиане и Онтарио продемонстрировали ценность как нашей многоканальной стратегии, так и наших инвестиций в новые технологии. В Луизиане мы извлекли выгоду как из наших лучших в своем классе региональных казино, так и из массового маркетинга, организованного спортивными деятелями Barstool. В Онтарио мы успешно запустили мобильное приложение theScore Bet 4 апреля, вызвав впечатляющий спрос. Кроме того, theScore Bet запустила новейший PAM и бонусный движок theScore, который позволяет нам предоставлять высоко настраиваемые функции и бесшовную интеграцию в приложение theScore media. Несмотря на раннее начало, мы были очень воодушевлены результатами. В 3 квартале 2022 года мы ожидаем перехода theScore Bet в Онтарио на собственную платформу theScore для управления рисками и торговли, что позволит нам значительно расширить функции и возможности продукта, включая расширенные рынки ставок и эксклюзивные функции ставок. Мы также продолжаем работать над переводом букмекера Barstool на PAM и торговую платформу theScore в 3 квартале 2023 года, что обеспечит значительные возможности для синергии затрат и доходов ”.
________________________ 1 Уровень собственности состоит из операционных сегментов розничной торговли, которые складываются из операционных результатов наших отчетных сегментов на Северо-Востоке, Юге, Западе и Среднем Западе.
Медиабизнес Предоставляет надежную платформу для дополнительных возможностей монетизации
Г-н Сноуден продолжил: “Наш медиабизнес набирает обороты, поскольку выручка theScore выросла на 42,0% в годовом исчислении в 1 квартале 2022 года и продолжает привлекать высокий уровень вовлеченности. Barstool Sports Inc. также продолжает расширять свою аудиторию и охват, стремясь к новым возможностям роста. 18 марта в Филадельфии открылся второй отдельно стоящий спортивный бар Barstool, пользующийся большим спросом. Кроме того, 7 мая Barstool будет транслировать альтернативный комментарий к "Канело против". Боксерский матч Bivol на DAZN, представляющий собой еще одно расширение бренда Barstool на спортивные события в прямом эфире. Заглядывая в будущее, мы считаем, что у медиабизнеса есть потенциал роста, поскольку мы начинаем осознавать преимущества перекрестного продвижения с Barstool Sports и дополнительные возможности монетизации ”.
ESG – Продолжать заботиться о наших людях, наших Сообществах и нашей Планете
26 апреля Компания опубликовала Отчет о корпоративной социальной ответственности за 2021 год, в котором содержится информация о давней приверженности Penn National Gaming Заботе о наших людях, наших сообществах и Планете. Основные события включают запуск стипендиального фонда STEM стоимостью 4 миллиона долларов и программы стажировок в исторически черных колледжах и университетах в штатах, в которых работает Penn. Пенн также выделил более 7 миллионов долларов на помощь в финансировании борьбы с COVID-19 и ликвидации последствий ураганов, в дополнение к поддержке благотворительных организаций и общественных организаций в сообществах, в которых он работает, что в два раза больше, чем в 2019 году.
Совсем недавно, 23 марта, руководители Penn принимали губернатора Луизианы Джона Бела Эдвардса и других высокопоставленных лиц на ежегодном гала-концерте Metanoia в казино и отеле L'Auberge в Батон-Руж, чтобы собрать средства для поддержки подростков, ставших жертвами торговли людьми. Пенн также провел несколько мероприятий в честь месяца женской истории, в том числе виртуальную панель “Женщины, стоящие за ставкой”, чтобы признать решающую роль, которую наши женщины-члены команды сыграли в разработке приложения "Ставка".
Обновление Авторизации Обратного выкупа акций
В течение трех месяцев, закончившихся 31 марта 2022 года, Компания выкупила 3 802 408 своих обыкновенных акций в рамках сделок на открытом рынке за 175,1 миллиона долларов США по средней цене 46,04 доллара за акцию. По нашему разрешению на сумму 750,0 миллионов долларов остается 574,9 миллиона долларов.
Ликвидность Остается Высокой
Общая ликвидность по состоянию на 31 марта 2022 года составила 2,48 миллиарда долларов, включая 1,81 миллиарда долларов в виде денежных средств и их эквивалентов. Общий чистый долг на конец квартала составил 923,5 млн долларов, увеличившись на 37,3 млн долларов по сравнению с 31 декабря 2021 года из-за более низкого остатка денежных средств, поскольку мы выполнили нашу программу обратного выкупа акций. Скорректированное на аренду чистое кредитное плечо по состоянию на 31 марта 2022 года составило 4,04 х по сравнению с 4,10х по состоянию на 31 декабря 2021 года.
3 мая 2022 года Компания заключила Второе Измененное и Пересмотренное Кредитное соглашение со своими различными кредиторами (“Второе измененное и пересмотренное кредитное соглашение”). Второе Измененное и пересмотренное Кредитное соглашение предусматривает возобновляемую кредитную линию на сумму 1,0 млрд. долл. США, неиспользованную на момент закрытия (“Возобновляемая кредитная линия”), пятилетний срочный кредит на сумму 550,0 млн. долл. США (“Срочный кредит А”) и семилетний срочный кредит на сумму 1,0 млрд. долл. США В средства (“Срочный заем В”) (вместе “Кредитные средства”). Поступления от Кредитных линий были использованы для погашения существующих остатков средств по срочному кредиту А и срочному кредиту В-1.
Дополнительная информация о отчетных результатах Penn, включая сверку результатов, не относящихся к GAAP, с их наиболее сопоставимыми показателями GAAP, включена в финансовые таблицы ниже. Компания не предоставляет сверку прогнозируемой скорректированной EBITDA и Скорректированной EBITDA, поскольку она не в состоянии с достаточной точностью предсказать величину определенных корректировок, которые могут существенно повлиять на результаты Компании, включая реализованные и нереализованные прибыли и убытки по долевым ценным бумагам, переоценку вознаграждений, выплачиваемых наличными на основе акций, условные платежи за покупку, связанные с предыдущими приобретениями, и расходы (выгоды) по налогу на прибыль, которые зависят от будущих событий, которые находятся вне контроля Компании или которые невозможно разумно предсказать.
Подведение итогов Первого квартала
|
For the three months ended March 31, |
|||||
(in millions, except per share data, unaudited) |
2022 |
|
2021 |
|||
Revenues |
$ |
1,564.2 |
|
$ |
1,274.9 |
|
Net income |
$ |
51.6 |
|
$ |
90.9 |
|
|
|
|
|
|||
Adjusted EBITDA (1) |
$ |
434.6 |
|
$ |
336.6 |
|
Rent expense associated with triple net operating leases (2) |
|
60.1 |
|
|
110.4 |
|
Adjusted EBITDAR (1) |
$ |
494.7 |
|
$ |
447.0 |
|
Payments to our REIT Landlords under Triple Net Leases (3) |
$ |
229.3 |
|
$ |
226.0 |
|
|
|
|
|
|||
Diluted earnings per common share |
$ |
0.29 |
|
$ |
0.55 |
(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. |
|
(2) |
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. and Hollywood Casino at Meadows Racetrack, and our individual triple net leases with VICI Properties Inc. (NYSE: VICI) ("VICI") for the real estate assets used in the operations of Margaritaville Casino Resort and Greektown Casino-Hotel (referred to collectively as our “triple net operating leases”). |
|
On January 14, 2022, the Company and GLPI amended certain terms of Master Leases which was concluded to be a lease modification under Accounting Standards Codification Topic 842, “Leases.” As a result of 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 is 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 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 (effective July 1, 2021), 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 is nominal. |
|
Penn National Gaming, INC. AND SUBSIDIARIES |
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Segment Information |
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The Company aggregates its properties into five reportable segments: Northeast, South, West, Midwest, and Interactive. |
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|
For the three months ended March 31, |
|||||||
(in millions, unaudited) |
2022 |
|
2021 |
|||||
Revenues: |
|
|
|
|||||
Northeast segment (1) |
$ |
658.5 |
|
|
$ |
570.9 |
|
|
South segment (2) |
|
341.4 |
|
|
|
295.9 |
|
|
West segment (3) |
|
140.9 |
|
|
|
96.6 |
|
|
Midwest segment (4) |
|
282.9 |
|
|
|
234.7 |
|
|
Interactive (5) |
|
141.5 |
|
|
|
86.3 |
|
|
Other (6) |
|
7.3 |
|
|
|
1.6 |
|
|
Intersegment eliminations (7) |
|
(8.3 |
) |
|
|
(11.1 |
) |
|
Total revenues |
$ |
1,564.2 |
|
|
$ |
1,274.9 |
|
|
|
|
|
|
|||||
Adjusted EBITDAR: |
|
|
|
|||||
Northeast segment (1) |
$ |
205.2 |
|
|
$ |
193.2 |
|
|
South segment (2) |
|
146.5 |
|
|
|
133.9 |
|
|
West segment (3) |
|
51.2 |
|
|
|
35.2 |
|
|
Midwest segment (4) |
|
125.5 |
|
|
|
106.0 |
|
|
Interactive (5) |
|
(10.0 |
) |
|
|
1.3 |
|
|
Other (6) |
|
(23.7 |
) |
|
|
(22.6 |
) |
|
Total Adjusted EBITDAR (8) |
$ |
494.7 |
|
|
$ |
447.0 |
|
(1) |
The Northeast segment consists of the following properties: Ameristar East Chicago, Greektown Casino-Hotel, 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 Meadows Racetrack, 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, 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, which owns Hollywood Casino at Kansas Speedway; Hollywood Casino St. Louis; Prairie State Gaming; and River City Casino. |
|
(5) |
The Interactive segment includes Penn Interactive, which operates social gaming, our internally-branded retail sportsbooks, iGaming and our Barstool Sportsbook mobile app, as well as the operating results of theScore, which was acquired on October 19, 2021. Interactive revenues are inclusive of a tax gross-up of $50.3 million and $39.4 million for the three months ended March 31, 2022 and 2021, respectively. In addition, Adjusted EBITDAR of the Interactive segment includes our proportionate share of the net income or loss of Barstool Sports, Inc. after adding back our share of non-operating items (such as interest expense, net; income taxes; depreciation and amortization; and stock-based compensation expense). |
|
(6) |
The Other category 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 National Gaming, INC. AND SUBSIDIARIES Reconciliation of Comparable GAAP Financial Measure to Adjusted EBITDA, Adjusted EBITDAR, and Adjusted EBITDAR Margin |
||||||||
|
For the three months ended March 31, |
|||||||
(in millions, unaudited) |
2022 |
|
2021 |
|||||
Net income |
$ |
51.6 |
|
|
$ |
90.9 |
|
|
Income tax expense |
|
47.6 |
|
|
|
20.6 |
|
|
Income from unconsolidated affiliates |
|
(8.7 |
) |
|
|
(9.6 |
) |
|
Interest expense, net |
|
160.8 |
|
|
|
135.7 |
|
|
Other (income) expenses |
|
40.7 |
|
|
|
(21.1 |
) |
|
Operating income |
|
292.0 |
|
|
|
216.5 |
|
|
Stock-based compensation |
|
17.0 |
|
|
|
4.2 |
|
|
Cash-settled stock-based awards variance |
|
(2.9 |
) |
|
|
21.5 |
|
|
Gain on disposal of assets |
|
(0.1 |
) |
|
|
(0.1 |
) |
|
Contingent purchase price |
|
(0.1 |
) |
|
|
0.1 |
|
|
Pre-opening expenses (1) |
|
1.5 |
|
|
|
1.6 |
|
|
Depreciation and amortization |
|
118.2 |
|
|
|
81.3 |
|
|
Insurance recoveries, net of deductible charges |
|
(8.8 |
) |
|
|
— |
|
|
Income from unconsolidated affiliates |
|
8.7 |
|
|
|
9.6 |
|
|
Non-operating items of equity method investments (2) |
|
1.8 |
|
|
|
1.6 |
|
|
Other expenses (1) (3) |
|
7.3 |
|
|
|
0.3 |
|
|
Adjusted EBITDA |
|
434.6 |
|
|
|
336.6 |
|
|
Rent expense associated with triple net operating leases |
|
60.1 |
|
|
|
110.4 |
|
|
Adjusted EBITDAR |
$ |
494.7 |
|
|
$ |
447.0 |
|
|
Net income margin |
|
3.3 |
% |
|
|
7.1 |
% |
|
Adjusted EBITDAR margin |
|
31.6 |
% |
|
|
35.1 |
% |
(1) |
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. |
|
(2) |
Consists principally of interest expense, net; income taxes; depreciation and amortization; and stock-based compensation expense associated with Barstool Sports, Inc. and our Kansas Entertainment, LLC joint venture. We record our portion of Barstool Sports, Inc.'s net income or loss, including adjustments to arrive at Adjusted EBITDAR, one quarter in arrears. |
|
(3) |
Consists of non-recurring acquisition and transaction costs and finance transformation costs associated with the implementation of our new Enterprise Resource Management system. |
|
Penn National Gaming, INC. AND SUBSIDIARIES Consolidated Statements of Operations |
||||||||
|
For the three months ended March 31, |
|||||||
(in millions, except per share data, unaudited) |
2022 |
|
2021 |
|||||
Revenues |
|
|
|
|||||
Gaming |
$ |
1,291.2 |
|
|
$ |
1,082.0 |
|
|
Food, beverage, hotel and other |
|
273.0 |
|
|
|
192.9 |
|
|
Total revenues |
|
1,564.2 |
|
|
|
1,274.9 |
|
|
Operating expenses |
|
|
|
|||||
Gaming |
|
686.6 |
|
|
|
527.8 |
|
|
Food, beverage, hotel and other |
|
171.9 |
|
|
|
123.1 |
|
|
General and administrative |
|
295.5 |
|
|
|
326.2 |
|
|
Depreciation and amortization |
|
118.2 |
|
|
|
81.3 |
|
|
Total operating expenses |
|
1,272.2 |
|
|
|
1,058.4 |
|
|
Operating income |
|
292.0 |
|
|
|
216.5 |
|
|
Other income (expenses) |
|
|
|
|||||
Interest expense, net |
|
(160.8 |
) |
|
|
(135.7 |
) |
|
Income from unconsolidated affiliates |
|
8.7 |
|
|
|
9.6 |
|
|
Other |
|
(40.7 |
) |
|
|
21.1 |
|
|
Total other expenses |
|
(192.8 |
) |
|
|
(105.0 |
) |
|
Income before income taxes |
|
99.2 |
|
|
|
111.5 |
|
|
Income tax expense |
|
(47.6 |
) |
|
|
(20.6 |
) |
|
Net income |
|
51.6 |
|
|
|
90.9 |
|
|
Less: Net loss attributable to non-controlling interest |
|
0.1 |
|
|
|
0.1 |
|
|
Net income attributable to Penn National Gaming |
$ |
51.7 |
|
|
$ |
91.0 |
|
|
|
|
|
|
|||||
Earnings per share: |
|
|
|
|||||
Basic earnings per share |
$ |
0.31 |
|
|
$ |
0.58 |
|
|
Diluted earnings per share |
$ |
0.29 |
|
|
$ |
0.55 |
|
|
|
|
|
|
|||||
Weighted-average common shares outstanding—basic |
|
168.2 |
|
|
|
155.7 |
|
|
Weighted-average common shares outstanding—diluted |
|
184.2 |
|
|
|
172.8 |
|
|
Selected Financial Information |
||||||||
Balance Sheet Data |
||||||||
(in millions, unaudited) |
March 31, 2022 |
|
December 31, 2021 |
|||||
Cash and cash equivalents |
$ |
1,805.5 |
|
|
$ |
1,863.9 |
|
|
|
|
|
|
|||||
Bank debt |
$ |
1,543.2 |
|
|
$ |
1,563.7 |
|
|
Notes (1) |
|
1,130.5 |
|
|
|
1,130.5 |
|
|
Other long-term obligations (2) |
|
55.3 |
|
|
|
55.9 |
|
|
Total traditional debt |
|
2,729.0 |
|
|
|
2,750.1 |
|
|
Financing obligation (3) |
|
96.6 |
|
|
|
90.4 |
|
|
Less: Debt discounts and debt issuance costs (4) |
|
(31.8 |
) |
|
|
(103.7 |
) |
|
|
$ |
2,793.8 |
|
|
$ |
2,736.8 |
|
|
|
|
|
|
|||||
Traditional net debt (5) |
$ |
923.5 |
|
|
$ |
886.2 |
|
(1) |
Inclusive of our 5.625% Notes due 2027, 4.125% Notes due 2029 and our 2.75% Convertible Notes due 2026. |
|
(2) |
Other long-term obligations as of March 31, 2022 primarily includes $44.5 million related to relocation fees due for both Hollywood Gaming at Dayton Raceway and Hollywood Gaming at Mahoning Valley Race Course, and $10.8 million related to our repayment obligation on a hotel and event center located near Hollywood Casino Lawrenceburg. |
|
(3) |
Represents cash proceeds received and non-cash interest on certain claims of which the principal repayment is contingent and classified as a financing obligation under Accounting Standards Codification Topic 470, “Debt.” |
|
(4) |
On January 1, 2022, the Company adopted ASU 2020-06, which resulted in a net $71.7 million reclassification of the equity component originally recognized as a debt discount under the previously bifurcated cash conversion feature of the 2.75% convertible senior notes due May 2026. Under ASU 2020-06, bifurcation for a cash conversion feature is no longer permitted. |
|
(5) |
Traditional net debt in the table above is calculated as “Total traditional debt,” which is the principal amount of debt outstanding (excludes the financing obligation associated with cash proceeds received and non-cash interest on certain claims of which the principal repayment is contingent) less “Cash and cash equivalents.” |
|
Cash Flow Data |
|||||||
The table below summarizes certain cash expenditures incurred by the Company. |
|
|
|||||
|
For the three months ended March 31, |
||||||
(in millions, unaudited) |
2022 |
|
2021 |
||||
Cash payments to our REIT Landlords under Triple Net Leases |
$ |
229.3 |
|
$ |
226.0 |
|
|
Cash payments (refunds) related to income taxes, net |
$ |
1.0 |
|
$ |
(8.8 |
) |
|
Cash paid for interest on traditional debt |
$ |
30.8 |
|
$ |
25.8 |
|
|
Capital expenditures |
$ |
65.6 |
|
$ |
25.7 |
|
|
Финансовые показатели, Не относящиеся к ОПБУ
Финансовые показатели, не относящиеся к GAAP, используемые в этом пресс-релизе, включают Скорректированную EBITDA, Скорректированный показатель EBITDA и Скорректированную маржу EBITDA. Эти финансовые показатели, не относящиеся к ОПБУ, не должны рассматриваться как замена или превосходство финансовых результатов и показателей, определенных или рассчитанных в соответствии с ОПБУ.
Мы определяем скорректированную EBITDA как прибыль до вычета процентных расходов, нетто; налоги на прибыль; износ и амортизация; компенсация на основе акций; погашение долга и расходы на финансирование; убытки от обесценения; страховые возмещения за вычетом вычитаемых расходов; изменения в оценочной справедливой стоимости наших условных обязательств по цене покупки; прибыль или убыток от выбытия активы; разница между бюджетом и фактическими расходами на выплату премий на основе акций, рассчитанных наличными; расходы перед открытием; и прочее. Скорректированный показатель EBITDA включает прибыль или убыток от неконсолидированных дочерних компаний, при этом наша доля внереализационных статей (таких как процентные расходы, нетто; налоги на прибыль; износ и амортизация; и расходы на компенсацию на основе акций) добавляется обратно для Barstool Sports, Inc. (“Barstool Sports”) и наших Kansas Entertainment, совместное предприятие ООО. Скорректированный показатель EBITDA включает расходы на аренду, связанные с нашей тройной чистой операционной арендой (компоненты операционной аренды содержатся в нашей тройной чистой основной аренде от 1 ноября 2013 года с Gaming and Leisure Properties, Inc. (Nasdaq: GLPI) (“GLPI”) и генеральный договор аренды triple net, принятый в связи с нашим приобретением Pinnacle Entertainment, Inc., наши индивидуальные договоры аренды triple net с GLPI на объекты недвижимости, используемые в эксплуатации Tropicana Las Vegas Hotel and Casino, Inc. и Hollywood Casino в Meadows Ипподром, а также наши индивидуальные договоры тройной чистой аренды с VICI Properties Inc. (NYSE: VICI) (“VICI”) на объекты недвижимости, используемые в операциях Margaritaville Casino Resort и Greektown Casino-Hotel). Хотя скорректированный показатель EBITDA включает расходы на аренду, связанные с нашей тройной чистой операционной арендой, мы считаем, что скорректированный показатель EBITDA полезен в качестве дополнительного показателя при оценке эффективности наших консолидированных результатов деятельности.
Скорректированный показатель EBITDA имеет экономическое значение, поскольку он используется руководством в качестве показателя эффективности для анализа эффективности нашего бизнеса и особенно актуален при оценке крупных долгосрочных проектов казино-отелей, поскольку он дает представление о текущих последствиях операционных решений, отделенных от существенных неоперационных амортизационных отчислений и затраты на финансирование таких проектов. Мы представляем скорректированный показатель EBITDA, поскольку он используется некоторыми инвесторами и кредиторами в качестве показателя эффективности и эффективности текущих бизнес-операций, включая нашу способность обслуживать задолженность и финансировать капитальные затраты, приобретения и операции. Эти расчеты обычно используются инвесторами, аналитиками и рейтинговыми агентствами в качестве основы для оценки и сравнения операционных показателей и оценки компаний в нашей отрасли. Чтобы рассматривать деятельность своих казино на более автономной основе, игровые компании, включая нас, исторически исключали из своих скорректированных расчетов EBITDA определенные корпоративные расходы, которые не связаны с управлением конкретными объектами недвижимости казино. Однако скорректированный показатель EBITDA не является показателем эффективности или ликвидности, рассчитанным в соответствии с GAAP. Скорректированная информация по EBITDA представлена в качестве дополнительного раскрытия, поскольку руководство считает, что это широко используемый показатель эффективности в игровой индустрии и что многие считают его ключевым показателем операционных результатов Компании.
Мы определяем Скорректированный показатель EBITDA как Скорректированный показатель EBITDA (как определено выше) плюс расходы на аренду, связанные с тройной чистой операционной арендой (что является обычным, повторяющимся денежным операционным расходом, необходимым для ведения нашего бизнеса). Скорректированный показатель EBITDA представлен на консолидированной основе вне финансовой отчетности исключительно в качестве оценочного показателя. Руководство считает, что скорректированный показатель EBITDA является дополнительным показателем, традиционно используемым аналитиками при оценке игровых компаний, подлежащих тройной чистой аренде, поскольку он устраняет последствия изменения методов аренды и структуры капитала. Этот показатель включен в качестве дополнительного раскрытия информации, поскольку (i) мы считаем, что Скорректированный показатель EBITDA традиционно используется аналитиками и инвесторами игровых операторов для определения стоимости собственного капитала игровых операторов, и (ii) Скорректированный показатель EBITDA является одним из показателей, используемых другими финансовыми аналитиками при оценке нашего бизнеса. Мы считаем, что Скорректированный показатель EBITDA полезен для целей оценки собственного капитала, поскольку (i) его расчет изолирует влияние финансирования недвижимости; и (ii) использование кратного скорректированного показателя EBITDA для расчета стоимости предприятия позволяет скорректировать баланс для признания оценочных обязательств, возникающих в результате операционной аренды, связанной с недвижимостью. Однако скорректированный показатель EBITDA, представленный на консолидированной основе, не является финансовым показателем в соответствии с GAAP, и его не следует рассматривать как показатель общей операционной эффективности или рассматривать отдельно или как альтернативу чистой прибыли, поскольку он исключает расходы на аренду, связанные с нашей тройной чистой операционной арендой, и предусмотрен для ограниченные цели, упомянутые в настоящем документе. Скорректированная рентабельность по EBITDA определяется как скорректированный показатель EBITDA на консолидированной основе (как определено выше), деленный на выручку на консолидированной основе. Скорректированная рентабельность по EBITDA представлена на консолидированной основе вне финансовой отчетности исключительно в качестве оценочного показателя.
Каждый из этих финансовых показателей, не относящихся к GAAP, не рассчитывается одинаковым образом всеми компаниями и, соответственно, не может быть подходящим показателем для сравнения результатов деятельности разных компаний. См. Таблицу выше, в которой представлена сверка этих показателей с эквивалентными финансовыми показателями по ОПБУ.
Презентация руководства, Конференц-связь, Веб-трансляция и подробности воспроизведения
Пенн проводит телефонную конференцию и одновременную веб-трансляцию сегодня в 9:00 утра по восточному времени, обе из которых открыты для широкой публики. Во время звонка руководство рассмотрит презентацию о доходах, доступ к которой можно получить по адресу https://pennnationalgaming.gcs-web.com/events-and-presentations/presentations .
Номер конференц-связи - 212-231-2939; пожалуйста, позвоните за пять минут до начала презентации, чтобы убедиться, что вы подключены. Заинтересованные стороны также могут получить доступ к прямой трансляции по адресу www.pngaming.com ; выделите 15 минут на регистрацию, загрузку и установку любого необходимого программного обеспечения. Вопросы и ответы будут зарезервированы для приглашенных аналитиков и инвесторов. К воспроизведению вызова можно получить доступ в течение тридцати дней по адресу www.pngaming.com .
Этот пресс-релиз, который включает финансовую информацию, подлежащую обсуждению руководством во время телефонной конференции, а также раскрытие и согласование финансовых показателей, не относящихся к GAAP, доступен на веб-сайте Компании, www.pngaming.com , в разделе “Инвесторы” (выберите ссылку для “Пресс-релизов”).
Об Penn National Gaming
Penn National Gaming, Inc. (Nasdaq: PENN) - ведущий североамериканский поставщик интегрированного развлекательного, спортивного контента и игрового опыта в казино. Член S&P 500®, Penn управляет 44 объектами недвижимости в 20 штатах, онлайн-ставками на спорт в 13 юрисдикциях и iCasino в пяти под портфелем хорошо известных брендов, включая Hollywood Casino®, L'Auberge®, Barstool Sportsbook® и theScore Bet®. Высокодифференцированная стратегия Penn, ориентированная на возможности органических перекрестных продаж, подкрепляется инвестициями в собственные технологии, включая современную медиа-платформу и платформу для ставок, а также собственную контент-студию iCasino. Портфолио компании дополняется ведущей в отрасли программой лояльности клиентов mychoice, которая предлагает более чем 25 миллионам участников уникальный набор вознаграждений и впечатлений по всем бизнес-каналам. Penn глубоко привержена развитию культуры, которая приветствует широкий круг клиентов и преданных своему делу членов команды. В течение последних девяти лет компания неизменно входила в первую тройку как “Работодатель первого выбора” в опросе удовлетворенности руководителей Bristol Associates-Spectrum Gaming. Кроме того, как давний добросовестный корпоративный гражданин, Penn также стремится быть надежным и ценным членом своих сообществ и ответственным распорядителем наших ограниченных природных ресурсов.
Прогнозные Заявления
Настоящий пресс-релиз содержит “прогнозные заявления” по смыслу Закона о реформе судебных разбирательств по частным ценным бумагам 1995 года. Эти утверждения могут быть идентифицированы с использованием прогнозной терминологии, такой как “ожидает”, “полагает”, “оценивает”, “проекты”, “намеревается”, “планирует”, “цель”, “стремится”, “может”, “будет”, “должен” или “ожидает” или отрицательные или другие варианты этих или подобных слов, или путем обсуждения будущих событий, стратегий или рисков и неопределенностей. В частности, прогнозные заявления включают, но не ограничиваются, заявления относительно: в компании ожидания, и руководство в отношении будущих результатов хозяйственной деятельности и финансового состояния, в том числе в отношении его 2022 выручки и скорректированной по EBITDAR радиус; предположения относительно руководящих указаний, включая масштабы и сроки проведения компании по продукции и технологиям инвестиций; компании ожидали обратного выкупа акций; ожидания компании в отношении результатов, и влияние конкуренции, в онлайн ставках на спорт, iGaming и в розницу/мобильные букмекеры, в том числе ожидаемые результаты Новости Ставки в Онтарио; компании запуске интерактивного сегмента продукции в новых юрисдикциях, а также совершенствования существующих интерактивных сегменте продукции, в том числе переход на theScore собственный риск и торговой платформы в Онтарио, интеграция со стула на спорт бесплатно мобильное приложение в США, а также перенос табурет букмекер на theScore игрок счет управления торговых площадках; ожидания компании в отношении своих будущих вложений в табурет спортивных и будущего успеха ее продукции; ожидания компании в отношении интеграции и синергии, связанных с интеграцией новости и табурет спорта; ожидания компании в отношении продолжающегося введения и потенциальные выгоды по безналичному расчету, кредитной и бесконтактные (в “3С”) в технологии; разработку проектов; и сроками, стоимостью и ожидаемой отдачи от капитальных вложений на результаты деятельности.
Все такие заявления подвержены рискам, неопределенностям и изменениям обстоятельств, которые могут существенно повлиять на будущие финансовые результаты и бизнес Компании. Соответственно, Компания предупреждает, что прогнозные заявления, содержащиеся в настоящем документе, обусловлены важными факторами, которые могут привести к тому, что фактические результаты будут существенно отличаться от тех, которые отражены в таких заявлениях. К таким факторам относятся: влияние экономических условий и рыночных условий на рынках, на которых работает Компания; конкуренция с другими развлечениями, спортивным контентом и игровым опытом в казино; сроки, стоимость и ожидаемое воздействие инвестиций в продукты и технологии; риски, связанные с международными операциями, разрешениями, лицензиями, финансированием, одобрениями и другие непредвиденные обстоятельства в связи с ростом в новых или существующих юрисдикциях; и дополнительные риски и неопределенности, описанные в Годовом отчете Компании по форме 10-K за год, закончившийся 31 декабря 2021 года, последующих Квартальных отчетах по форме 10-Q и Текущих отчетах по форме 8-K, каждый из которых представлен в Комиссия по ценным бумагам и биржам США. Компания не намерена публично обновлять какие-либо прогнозные заявления, за исключением случаев, предусмотренных законом. Учитывая эти риски, неопределенности и допущения, прогнозные события, обсуждаемые в этом пресс-релизе, могут не произойти.
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