Mar 31, 2020

Penn National Q1 2020 Earnings Report

Penn National's first quarter revenues were impacted by COVID-19, resulting in a net loss.

Key Takeaways

Penn National Gaming reported first quarter revenues of $1.12 billion, a net loss of $608.6 million, Adjusted EBITDAR of $252.3 million, and Adjusted EBITDA of $154.8 million. The company moved aggressively to improve liquidity and is focusing on long-term objectives. The omni-channel growth strategy remains intact with the scheduled launch of the Barstool Sportsbook App in the third quarter.

Penn National saw a phenomenal start to 2020 with record results in January and February, performing well ahead of guidance in every segment.

Momentum was cut short in mid-March by the COVID-19 pandemic, requiring the temporary closure of all 41 properties.

The company finished March with $730.7 million of cash on the balance sheet and has reduced its average cash burn to approximately $83 million per month.

Penn National is well-positioned to resume its positive momentum upon the reopening of its casinos, benefiting from geographic diversification and the Barstool Sports partnership.

Total Revenue
$1.12B
Previous year: $1.28B
-13.0%
EPS
$0.06
Previous year: $0.35
-82.9%
Adjusted EBITDA
$155M
Adjusted EBITDAR
$252M
Gross Profit
$458M
Previous year: $573M
-20.1%
Cash and Equivalents
$731M
Previous year: $400M
+82.5%
Free Cash Flow
-$76M
Previous year: $88M
-186.4%
Total Assets
$13.9B
Previous year: $13.4B
+3.8%

Penn National

Penn National

Forward Guidance

Penn National has withdrawn its 2020 financial guidance due to the COVID-19 outbreak and ongoing uncertainty.