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Dec 31, 2019
Penn National Q4 2019 Earnings Report
Penn National's financial performance in Q4 2019 resulted in revenues of $1.34 billion and an adjusted EBITDAR of $399.4 million.
Key Takeaways
Penn National Gaming reported Q4 revenues of $1.34 billion, a net loss of $92.9 million, adjusted EBITDA of $304.0 million, and adjusted EBITDAR of $399.4 million. The company reduced traditional debt by approximately $70 million during the quarter and initiated a 2020 full-year adjusted EBITDAR guidance range of $1.67 billion to $1.70 billion.
Revenues increased to $1.34 billion, up $185.9 million year-over-year.
Net loss was $92.9 million, driven by $173.1 million in impairment losses.
Adjusted EBITDA was $304.0 million, a decrease of $16.1 million year-over-year.
Adjusted EBITDAR was $399.4 million, exceeding guidance for the fourth quarter.
Penn National
Penn National
Penn National Revenue by Segment
Revenue by Segment
Northeast Revenue
CapyFin.comSouth Revenue
CapyFin.comWest Revenue
CapyFin.comMidwest Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
The Company’s full year 2020 Adjusted EBITDAR range reflects the anticipated opening of a competitor’s expansion in Black Hawk, Colorado in late Q1-20/early Q2-20. Guidance excludes any impact related to the Barstool Sports transaction.
Positive Outlook
- Adjusted EBITDAR range of $1.67 billion to $1.70 billion, which includes costs associated with the launch of our sports betting app
- Corporate overhead expenses of $94 million, which is net of allocations to our properties
- Cash payments to our REIT Landlords under Triple Net Leases (which continue to be fully tax deductible) in the range of $901 million to $905 million. The low end of the range reflects no escalated rent, while the high end assumes full escalated rent
- Maintenance capital expenditures of $199 million
- Project capital expenditures for Hollywood Casino York of $57 million
Challenges Ahead
- Project capital expenditures for Hollywood Casino Morgantown of $70 million
- Cash interest on traditional debt of $105 million
- Cash taxes of $60 million
- A diluted share count of approximately 118 million
- The Company assumes there will be no significant changes in applicable legislation, regulatory environment, world events, weather, recent consumer trends, economic conditions, oil prices, competitive landscape (other than listed above) or other circumstances beyond our control that may adversely affect the Company’s results of operations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income