Business
Penn National Gaming Reports Third Quarter Revenues of $1.35 Billion, Net Income of $43.7 Million, Adjusted EBITDA of $311.6 Million and Adjusted EBITDAR of $407.9 Million
- Reduced Traditional Debt by Nearly $100 Million in the Third Quarter - WYOMISSING, Pa.--(BUSINESS WIRE)-- Penn National Gaming, Inc. (NASDAQ: PENN) (“Penn
About this update from Penn Entertainment, Inc.
[{"type":"text","content":"\n- Reduced Traditional Debt by Nearly $100 Million in the Third Quarter -\n\n WYOMISSING, Pa.--(BUSINESS WIRE)--\nPenn National Gaming, Inc. (NASDAQ: PENN) (“Penn National” or the “Company”) today reported financial results for the three and nine months ended September 30, 2019, initiated 2019 fourth quarter guidance, and updated full year 2019 guidance.\n\n\n2019 Third Quarter Financial Highlights:\n\n\n\nRevenues of $1.35 billion, an increase of $564.8 million year over year;\n\n\nNet income of $43.7 million and net income margin of 3.2%, as compared to $36.1 million and 4.6%, respectively, in the prior year;\n\n\nAdjusted EBITDA (1) of $311.6 million, an increase of $81.9 million year over year;\n\n\nAdjusted EBITDAR (1) of $407.9 million, an increase of $178.2 million year over year;\n\n\nAdjusted EBITDAR margin of 30.1%, marking an increase of 100 basis points year over year;\n\n\nCash payments to our REIT Landlords under Triple Net Leases (1) of $222.6 million, an increase of $107.4 million year over year; and\n\n\nTraditional debt decreased by $97.2 million during the quarter, principally due to repayments under our senior secured credit facilities. As of September 30, 2019, our traditional net debt ratio was 2.5x and net leverage on a lease-adjusted basis was 5.6x.\n\n\n\n(1) Beginning in the third quarter of 2019, management revised certain of its non-GAAP financial measures. We continue to present Adjusted EBITDAR on a consolidated basis as a valuation metric and now present Adjusted EBITDA on a consolidated basis as a performance measure. Furthermore, the Company no longer presents a financial metric showing Adjusted EBITDAR less the cash payments made to our REIT Landlords under our Triple Net Leases (as defined later in this release); however, the Company continues to believe that providing investors with information regarding cash lease payments helps them to better understand the Company’s business and financial results and will separately report this amount on a prospective basis. Refer to the “Non-GAAP Financial Measures” section below for more information.\n\n\nOperating Update\n\n\nTimothy J. Wilmott, Chief Executive Officer, commented: “Our results for the quarter reflect the consistency of the consumer that we have seen over the last year. Our quarterly Adjusted EBITDAR of $407.9 million was slightly off ou...