Company to Repurchase at Least $350 Million
of Shares in 2025
PENN Entertainment, Inc. (“PENN” or the “Company”) (Nasdaq:
PENN) today reported financial results for the quarter and year
ended December 31, 2024.
Jay Snowden, Chief Executive Officer and President, said:
“PENN’s fourth quarter property-level operating results reflect
solid performance, as properties not impacted by new supply
generated nearly 3% year-over-year revenue growth. Despite
well-known, customer friendly sports betting outcomes during the
quarter, our Interactive segment delivered significant
year-over-year improvements in revenue and Adjusted EBITDA driven
by our disciplined promotional strategies and accelerated growth in
our online Casino business. The success in our iCasino business is
bolstered by the continued strong momentum from the recent launches
of our standalone Hollywood Casino app in Pennsylvania and
Michigan. We are excited by the opportunities that lie in front of
us in 2025 and into 2026 in all aspects of our business and are
announcing this morning our intent to repurchase at least $350
million of shares this year.
Solid Customer Demand
Property level highlights1:
- Revenues of $1.4 billion;
- Adjusted EBITDAR of $461.2 million; and
- Adjusted EBITDAR margins of 33.1%.
_______________________________________ 1 Property level
consists of retail operating segments which are composed of our
Northeast, South, West, and Midwest reportable segments.
“Property-level operating results reflect the ongoing success of
our initiatives designed to enhance the customer experience and
improve operational efficiency,” said Mr. Snowden. “Led by our
best-in-class property leadership teams, we are continuing to
reimagine our casinos through new technology, hotel renovations,
F&B offerings, ESPN BET-branded retail sportsbooks, and
exciting pop-up experiences. Our performance has been further
supported by our omni-channel strategy of cross-selling our growing
digital database into retail engagement. The number of online
customers cross-sold into retail this quarter has grown by more
than 64% year-over-year. These efforts all contributed to
impressive results in key markets, including Ohio, Massachusetts,
Kansas, and Missouri, which helped balance the impacts from new
supply affecting several of our properties. Our four retail growth
projects remain on budget and on track, with the new Hollywood
Casino in Joliet expected to open in the fourth quarter of 2025,
subject to regulatory approvals.
Executing on Roadmap and Delivering Results
Interactive segment highlights:
- Revenues of $275.0 million (including tax gross up of $132.8
million); and
- Adjusted EBITDA loss of $109.8 million.
“In the Interactive segment, our parlay mix improved
sequentially each month since October, and we experienced greater
than 30% parlay mix as a percentage of handle in December and
January. Greater same game parlay (“SGP”) adoption contributed to
the parlay mix improvement, with SGP mix as a percentage of handle
increasing each month since football season began. In addition, our
online casino business delivered record quarterly gaming revenue,
with over 60% growth year-over-year and continued momentum into
2025. We remain focused on delivering further enhancements to our
digital offerings this year, including live streaming in the ESPN
BET app, Men’s NCAA Tournament Challenge integrations with ESPN,
and additional launches of our standalone iCasino app offerings,”
concluded Mr. Snowden.
Liquidity and Financial Position
Total liquidity as of December 31, 2024 was $1.7 billion
inclusive of $706.6 million in Cash and cash equivalents.
Traditional net debt as of the end of the quarter was $1.9
billion.
Summary of Fourth Quarter
Results
For the quarter ended
December 31,
(in millions,
except per share data, unaudited)
2024
2023
Revenues
$
1,669.0
$
1,395.4
Net loss
$
(133.8
)
$
(358.8
)
Adjusted EBITDA (1)
$
165.2
$
(39.6
)
Rent expense associated with triple net
operating leases (2)
155.5
152.1
Adjusted EBITDAR (1)
$
320.7
$
112.5
Cash payments to our REIT Landlords under
Triple Net Leases (3)
$
239.4
$
235.4
Diluted loss per common share
$
(0.88
)
$
(2.37
)
(1)
For more information, definitions, and
reconciliations see the “Non-GAAP Financial Measures” section
below.
(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”),
that was amended and restated effective January 1, 2023 (referred
to as the AR PENN Master Lease); our triple net master lease
entered in conjunction with and coterminous to the AR PENN Master
Lease (referred to as the 2023 Master Lease); as well as 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 (referred to as the Margaritaville
Lease) and Hollywood Casino at Greektown (referred to as the
Greektown Lease) and referred to collectively as our “triple net
operating leases.” The expense related to operating lease
components contained within our triple net operating leases are
recorded as “General and administrative” within the Consolidated
Statements of Operations.
(3)
Consists of total cash payments made to
GLPI and VICI (referred to collectively as our “REIT Landlords”)
under our triple net operating leases (as defined above), the
Pinnacle Master Lease, and the Morgantown Lease and collectively
referred to as our “Triple Net Leases.”
Adjusted EPS
The following table reconciles diluted loss per share (“EPS”) to
Adjusted EPS (approximate EPS impact shown, per share; positive
adjustments represent charges to income):
For the quarter ended
December 31,
2024
2023
Diluted loss per share
$
(0.88
)
$
(2.37
)
Impairment losses
0.59
0.86
Insurance recoveries, net of deductible
charges
(0.02
)
(0.05
)
Loss on disposal of assets
0.01
—
Transaction related expenses
0.01
0.03
Legal matters inclusive of litigation
settlements
0.03
—
Non-operating items:
Gain related to debt and equity
investments
(0.02
)
(0.01
)
Income tax impact on net loss adjustments
(1)
(0.16
)
(0.21
)
Adjusted EPS
$
(0.44
)
$
(1.75
)
(1)
The income tax impact includes
current and deferred income tax expense based upon the nature of
the adjustment and the jurisdiction in which it occurs.
PENN ENTERTAINMENT, INC. AND
SUBSIDIARIES
Segment Information
The Company aggregates its operations into
five reportable segments: Northeast, South, West, Midwest, and
Interactive.
For the quarter ended
December 31,
For the year ended
December 31,
(in millions,
unaudited)
2024
2023
2024
2023
Revenues:
Northeast segment (1)
$
689.9
$
662.9
$
2,755.7
$
2,738.4
South segment (2)
284.2
285.1
1,169.0
1,216.4
West segment (3)
129.4
133.7
525.3
528.5
Midwest segment (4)
290.7
290.6
1,172.2
1,172.6
Interactive (5)
275.0
31.5
959.9
718.8
Other (6)
3.7
3.7
19.6
20.2
Intersegment eliminations (7)
(3.9
)
(12.1
)
(23.6
)
(32.0
)
Total revenues
$
1,669.0
$
1,395.4
$
6,578.1
$
6,362.9
Adjusted EBITDAR:
Northeast segment (1)
$
194.4
$
192.5
$
801.0
$
831.0
South segment (2)
101.9
113.0
433.2
494.1
West segment (3)
43.5
50.8
187.5
204.2
Midwest segment (4)
121.4
120.1
486.8
496.6
Interactive (5)
(109.8
)
(333.8
)
(499.5
)
(402.5
)
Other (6)
(30.7
)
(30.1
)
(116.7
)
(110.8
)
Total Adjusted EBITDAR (8)
$
320.7
$
112.5
$
1,292.3
$
1,512.6
(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, Hollywood Casino at PENN
National Race Course, Hollywood Casino Perryville, Hollywood Casino
Toledo, Hollywood Casino York, 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 Spa 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, 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 online sports betting, online casino/iCasino and social gaming
operations, management of retail sports betting, media, and the
operating results of Barstool Sports, Inc. (“Barstool” or “Barstool
Sports”). We owned 36% of Barstool common stock prior to acquiring
the remaining 64% of Barstool common stock on February 17, 2023. In
connection with PENN’s decision to rebrand our online sports
betting business from Barstool Sportsbook to ESPN BET, PENN entered
into a stock purchase agreement, and on August 8, 2023 we sold 100%
of the outstanding shares of Barstool. Interactive revenues are
inclusive of a tax gross-up of $132.8 million and $107.0 million
for the quarters ended December 31, 2024 and 2023, respectively,
and $435.6 million and $390.4 million for the years ended December
31, 2024 and 2023, 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 Park, the Company’s JV interests in Freehold Raceway
(which ceased operations on December 28, 2024) and our management
contract for Retama Park Racetrack. 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. Corporate overhead
costs were $26.3 million and $28.6 million for the quarters ended
December 31, 2024 and 2023, respectively, and $104.8 million and
$106.7 million for the years ended December 31, 2024 and 2023,
respectively.
(7)
Primarily represents the elimination of
intersegment revenues associated with our 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 quarter ended
December 31,
For the year ended
December 31,
(in millions,
unaudited)
2024
2023
2024
2023
Net loss
$
(133.8
)
$
(358.8
)
$
(313.3
)
$
(491.4
)
Income tax benefit
(15.0
)
(49.1
)
(28.0
)
(8.2
)
Interest expense, net
113.6
118.6
470.5
464.7
Interest income
(4.4
)
(9.8
)
(23.6
)
(40.3
)
Income from unconsolidated affiliates
(6.0
)
(8.3
)
(28.1
)
(25.3
)
Gain on Barstool Acquisition, net (1)
—
—
—
(83.4
)
Gain on REIT transactions, net (2)
—
—
—
(500.8
)
Loss on early extinguishment of debt
0.3
—
0.3
—
Other income
(2.8
)
(1.0
)
(5.3
)
(5.5
)
Operating income (loss)
(48.1
)
(308.4
)
72.5
(690.2
)
Loss on disposal of Barstool (3)
—
—
—
923.2
Stock-based compensation
13.9
14.5
52.9
85.9
Cash-settled stock-based awards variance
(4)
(3.8
)
(1.8
)
(18.7
)
(13.8
)
Loss on disposal of assets
1.2
0.1
10.0
0.1
Contingent purchase price
(0.1
)
0.1
(1.2
)
1.9
Depreciation and amortization
107.1
111.2
433.6
435.1
Impairment losses (5)
89.1
130.6
89.1
130.6
Insurance recoveries, net of deductible
charges
(2.8
)
—
(5.5
)
(13.9
)
Income from unconsolidated affiliates
6.0
8.3
28.1
25.3
Non-operating items of equity method
investments (6)
1.2
1.0
4.4
7.4
Other expenses (7)
1.5
4.8
7.0
29.9
Adjusted EBITDA
165.2
(39.6
)
672.2
921.5
Rent expense associated with triple net
operating leases
155.5
152.1
620.1
591.1
Adjusted EBITDAR
$
320.7
$
112.5
$
1,292.3
$
1,512.6
Net loss margin
(8.0
)%
(25.7
)%
(4.8
)%
(7.7
)%
Adjusted EBITDAR margin
19.2
%
8.1
%
19.6
%
23.8
%
(1)
Includes a gain of $66.5 million
associated with Barstool related to remeasurement of the equity
investment immediately prior to the acquisition date of February
17, 2023 and a gain of $16.9 million related to the acquisition of
the remaining 64% of Barstool common stock.
(2)
Upon the execution of the February 21,
2023 AR PENN Master Lease and the 2023 Master Lease, both effective
January 1, 2023, we recognized a gain of $500.8 million as a result
of the reclassification and remeasurement of lease components.
(3)
Relates to the loss incurred on the sale
of 100% of the outstanding shares of Barstool which was completed
on August 8, 2023.
(4)
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.
(5)
For the periods ended December 31, 2024,
impairment charges relate to the Northeast, South, and Midwest
segments. For the periods ended December 31, 2023, impairment
charges relate to the Northeast segment.
(6)
For the quarters ended December 31, 2024
and 2023, and for the year ended December 31, 2024, the respective
amounts consist principally of depreciation expense associated with
our Kansas Entertainment, LLC joint venture. For the year ended
December 31, 2023, amounts consist principally of interest expense,
net, income taxes, depreciation and amortization, and stock-based
compensation expense associated with Barstool prior to us acquiring
the remaining 64% of Barstool common stock and our Kansas
Entertainment, LLC joint venture.
(7)
Consists of non-recurring acquisition and
transaction costs and prior to August 1, 2024 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 quarter ended
December 31,
For the year ended
December 31,
(in millions,
except per share data, unaudited)
2024
2023
2024
2023
Revenues
Gaming
$
1,290.9
$
1,036.3
$
5,169.5
$
4,905.8
Food, beverage, hotel, and other
378.1
359.1
1,408.6
1,457.1
Total revenues
1,669.0
1,395.4
6,578.1
6,362.9
Operating expenses
Gaming
852.3
840.3
3,429.0
2,989.4
Food, beverage, hotel, and other
270.3
237.9
985.5
1,011.4
General and administrative
398.3
383.8
1,568.4
1,563.4
Depreciation and amortization
107.1
111.2
433.6
435.1
Impairment losses
89.1
130.6
89.1
130.6
Loss on disposal of Barstool
—
—
—
923.2
Total operating expenses
1,717.1
1,703.8
6,505.6
7,053.1
Operating income (loss)
(48.1
)
(308.4
)
72.5
(690.2
)
Other income (expenses)
Interest expense, net
(113.6
)
(118.6
)
(470.5
)
(464.7
)
Interest income
4.4
9.8
23.6
40.3
Income from unconsolidated affiliates
6.0
8.3
28.1
25.3
Gain on Barstool Acquisition, net
—
—
—
83.4
Gain on REIT transactions, net
—
—
—
500.8
Loss on early extinguishment of debt
(0.3
)
—
(0.3
)
—
Other
2.8
1.0
5.3
5.5
Total other income (expenses)
(100.7
)
(99.5
)
(413.8
)
190.6
Loss before income taxes
(148.8
)
(407.9
)
(341.3
)
(499.6
)
Income tax benefit
15.0
49.1
28.0
8.2
Net loss
(133.8
)
(358.8
)
(313.3
)
(491.4
)
Less: Net loss attributable to
non-controlling interest
0.5
0.7
1.8
1.4
Net loss attributable to PENN
Entertainment, Inc.
$
(133.3
)
$
(358.1
)
$
(311.5
)
$
(490.0
)
Loss per share:
Basic loss per share
$
(0.88
)
$
(2.37
)
$
(2.05
)
$
(3.22
)
Diluted loss per share
$
(0.88
)
$
(2.37
)
$
(2.05
)
$
(3.22
)
Weighted-average common shares
outstanding—basic
152.2
151.3
152.1
152.1
Weighted-average common shares
outstanding—diluted
152.2
151.3
152.1
152.1
Selected Financial Information
and GAAP to Non-GAAP Reconciliations
(in millions,
unaudited)
December 31,
2024
December 31,
2023
Cash and cash equivalents
$
706.6
$
1,071.8
Total traditional debt
$
2,596.1
$
2,643.7
Less: Cash and cash equivalents
(706.6
)
(1,071.8
)
Traditional net debt (1)
$
1,889.5
$
1,571.9
Amended Revolving Credit Facility due
2027
$
—
$
—
Amended Term Loan A Facility due 2027
481.3
508.8
Amended Term Loan B Facility due 2029
975.0
985.0
5.625% Notes due 2027
400.0
400.0
4.125% Notes due 2029
400.0
400.0
2.75% Convertible Notes due 2026
330.5
330.5
Other long-term obligations
9.3
19.4
Total traditional debt
2,596.1
2,643.7
Financing obligation (2)
201.2
154.1
Less: Debt discounts and debt issuance
costs
(26.6
)
(32.2
)
$
2,770.7
$
2,765.6
Total traditional debt
$
2,596.1
$
2,643.7
Less: Cash and cash equivalents
(706.6
)
(1,071.8
)
Plus: Cash rent payments to REIT landlords
for the trailing twelve months (3)
7,603.2
7,502.4
$
9,492.7
$
9,074.3
Adjusted EBITDAR for the trailing twelve
months
$
1,292.3
$
1,512.6
Lease-adjusted net leverage ratio (1)
7.3x
6.0x
Traditional net leverage (1)
5.5x
2.7x
(1)
See “Non-GAAP Financial Measures” section
below for more information as well as the definitions of
Traditional net debt, Lease-adjusted net leverage ratio, and
Traditional net leverage.
(2)
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.”
(3)
Amount equals 8 times the total cash rent
payments to REIT landlords for the trailing twelve months.
Cash Flow Data
The table below summarizes certain cash expenditures incurred by
the Company.
For the quarter ended
December 31,
For the year ended
December 31,
(in millions,
unaudited)
2024
2023
2024
2023
Cash payments to our REIT Landlords under
Triple Net Leases
$
239.4
$
235.4
$
950.4
$
937.8
Cash payments (refunds) related to income
taxes, net
$
(2.7
)
$
—
$
(3.8
)
$
73.9
Cash paid for interest on traditional
debt
$
25.6
$
34.7
$
154.3
$
162.6
Capital expenditures
$
221.0
$
152.2
$
482.7
$
360.0
Non-GAAP Financial Measures
The Non-GAAP Financial Measures used in this press release
include Adjusted EBITDA, Adjusted EBITDAR, Adjusted EBITDAR margin,
Adjusted EPS, Traditional net debt, Traditional net leverage ratio,
and Lease-adjusted net leverage ratio. 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, interest income, income taxes, depreciation and amortization,
stock-based compensation, debt extinguishment 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, loss on disposal of a business,
non-cash gains/losses associated with REIT transactions, non-cash
gains/losses associated with partial and step acquisitions as
measured in accordance with ASC 805 “Business Combinations,” 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 (prior to our acquisition of Barstool on February 17,
2023) and our Kansas Entertainment, LLC joint venture. Adjusted
EBITDA is inclusive of rent expense associated with our triple net
operating leases with our REIT landlords. 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 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 a 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.
Adjusted EPS is diluted earnings or loss per share adjusted to
exclude gains/losses on the disposal of a business; non-cash
gains/losses associated with REIT transactions; non-cash
gains/losses associated with partial and step acquisitions as
measured in accordance with ASC 805 Topic “Business Combinations;”
impairment losses; pre-opening expenses; debt extinguishment
charges; gains/losses on the disposal of assets; foreign currency
gains/losses; transaction related expenses; business interruption
insurance proceeds; net gains/losses related to equity investments;
and other.
Adjusted EPS is a non-GAAP measure and is presented solely as a
supplemental disclosure to reported GAAP measures because
management believes this measure is useful in providing
period-to-period comparisons of the results of the Company’s
operations to assist investors in reviewing the Company’s operating
performance over time. Management believes it is useful to exclude
certain items when comparing current performance to prior periods
because these items can vary significantly depending on specific
underlying transactions or events. Further, management believes
certain excluded items may not relate specifically to current
operating trends or be indicative of future results. Adjusted EPS
should not be construed as an alternative to GAAP earnings per
share as an indicator of the Company’s performance.
We calculate Traditional net debt 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. Management
believes that Traditional net debt is an important measure to
monitor leverage and evaluate the balance sheet. With respect to
Traditional net debt, Cash and cash equivalents are subtracted from
the GAAP measure because they could be used to reduce the Company’s
debt obligations. A limitation associated with using Traditional
net debt is that it subtracts Cash and cash equivalents and
therefore may imply that there is less Company debt than the most
comparable GAAP measure indicates. Management believes that
investors may find it useful to monitor leverage and evaluate the
balance sheet.
The Company’s Traditional net leverage ratio is defined as
Traditional net debt (as defined above) divided by Adjusted EBITDAR
(as defined above) for the trailing twelve months less cash rent
payments to REIT landlords for the trailing twelve months.
Management believes this measure is useful as a supplemental
measure and provides an indication of the results generated by the
Company in relation to its level of indebtedness with the cash
generated from Company operations.
The Company’s Lease-adjusted net leverage ratio’s numerator is
calculated as cash rent payments to REIT landlords for the trailing
twelve months capitalized at 8 times plus Traditional net debt (as
defined above). The Company’s Lease-adjusted net leverage ratio’s
denominator is Adjusted EBITDAR (as defined above) for the trailing
twelve months. Management believes this measure is useful as a
supplemental measure and provides an indication of the results
generated by the Company in relation to its level of indebtedness
(including leases) with the cash generated from Company
operations.
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 tables above, which present 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 a.m. E.T. today, both of which are open to the general public.
During the call, management will review a presentation regarding
the quarter and recent developments that can be accessed at
http://investors.pennentertainment.com/events-and-presentations/presentations.
The conference call number is 203-518-9783; 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.pennentertainment.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
http://www.pennentertainment.com/corp/investors.
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,
http://www.pennentertainment.com/corp/investors (select link for
“Press Releases”).
About PENN Entertainment, Inc.
PENN Entertainment, Inc., together with its subsidiaries
(“PENN,” or the “Company”), is North America’s leading provider of
integrated entertainment, sports content, and casino gaming
experiences. PENN operates in 28 jurisdictions throughout North
America, with a broadly diversified portfolio of casinos,
racetracks, and online sports betting and iCasino offerings under
well-recognized brands including Hollywood Casino®, L’Auberge®,
ESPN BET™, and theScore BET Sportsbook and Casino®. PENN’s ability
to leverage its partnership with ESPN, the “worldwide leader in
sports,” and its ownership of theScore™, the top digital sports
media brand in Canada, is central to the Company’s highly
differentiated strategy to expand its footprint and efficiently
grow its customer ecosystem. PENN’s focus on organic cross-sell
opportunities is reinforced by its market-leading retail casinos,
sports media assets, and technology, including a proprietary
state-of-the-art, fully integrated digital sports and iCasino
betting platform, and an in-house iCasino content studio (PENN Game
Studios). The Company’s portfolio is further bolstered by its
industry-leading PENN Play™ customer loyalty program, offering its
approximately 32 million members a unique set of rewards and
experiences.
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 by the use of
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 future results
of operations and financial condition, including, but not limited
to, projections of revenue, Adjusted EBITDA, Adjusted EBITDAR and
other financial measures; the assumptions provided regarding the
guidance, including the scale and timing of the Company’s product
and technology investments; the Company’s expectations regarding
results and customer growth and the impact of competition in
retail/mobile/online sportsbooks, iCasino, social gaming, and
retail operations; the Company’s development and launch of its
Interactive segment’s products in new jurisdictions and
enhancements to existing Interactive segment products, including
the content for the ESPN BET and theScore BET and the further
development of ESPN BET and theScore BET on our proprietary player
account management system and risk and trading platforms; the
benefits of the Sportsbook Agreement between the Company and ESPN;
the Company’s expectations regarding its Sportsbook Agreement with
ESPN and the future success of ESPN BET; the Company’s expectations
with respect to the integration and synergies related to the
Company’s integration of theScore and the continued growth and
monetization of the Company’s media business; the Company’s
expectations that its portfolio of assets provides a benefit of
geographically-diversified cash flows from operations; management’s
plans and strategies for future operations, including statements
relating to the Company’s plan to expand gaming operations through
the implementation and execution of a disciplined capital
expenditure program at our existing properties, the pursuit of
strategic acquisitions and investments, and the development of new
gaming properties, including the development projects and the
anticipated benefits; improvements, expansions, or relocations of
our existing properties; entrance into new jurisdictions; expansion
of gaming in existing jurisdictions; strategic investments and
acquisitions; cross-sell opportunities between our retail gaming,
online sports betting, and iCasino businesses; our ability to
obtain financing for our development projects on attractive terms;
the timing, cost and expected impact of planned capital
expenditures on the Company’s results of operations; and the
actions of regulatory, legislative, executive, or judicial
decisions at the federal, state, provincial, or local level with
regard to our business and the impact of any such actions.
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 and
market conditions in the markets in which the Company operates or
otherwise, including the impact of global supply chain disruptions,
price inflation, rising interest rates, slowing economic growth,
and geopolitical and regulatory uncertainty; competition with other
entertainment, sports content, and gaming experiences; the timing,
cost and expected impact of product and technology investments;
risks relating to operations, permits, licenses, financings,
approvals and other contingencies in connection with growth in new
or existing jurisdictions; our ability to successfully acquire and
integrate new properties and operations and achieve expected
synergies from acquisitions; the availability of future borrowings
under our Amended Credit Facilities or other sources of capital to
enable us to service our indebtedness, make anticipated capital
expenditures or pay off or refinance our indebtedness prior to
maturity; the impact of indemnification obligations under the
Barstool SPA; our ability to achieve the anticipated financial
returns from the Sportsbook Agreement with ESPN, including due to
fees, costs, taxes, or circumstances beyond the Company’s or ESPN’s
control; the occurrence of any event, change or other circumstances
that could give rise to the right of one or both of the Company and
ESPN to terminate the Sportsbook Agreement between the companies;
the ability of the Company and ESPN to agree to extend the initial
10-year term of the Sportsbook Agreement on mutually satisfactory
terms, if at all, and the costs and obligations of such terms if
agreed; the outcome of any legal proceedings that may be instituted
against the Company, ESPN or their respective directors, officers
or employees; the ability of the Company or ESPN to retain and hire
key personnel; the impact of new or changes in current laws,
regulations, rules or other industry standards; the impact of
activist shareholders; our ability to maintain our gaming licenses
and concessions and comply with applicable gaming law, changes in
current laws, regulations, rules or other industry standards, and
additional factors described in the Company’s Annual Report on Form
10-K for the year ended December 31, 2023, 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250227740023/en/
Mike Nieves SVP, Finance & Treasurer PENN Entertainment,
Inc. 610-373-2400
Joseph N. Jaffoni, Richard Land JCIR 212-835-8500 or
penn@jcir.com
Grafico Azioni PENN Entertainment (NASDAQ:PENN)
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Da Feb 2025 a Mar 2025
Grafico Azioni PENN Entertainment (NASDAQ:PENN)
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Da Mar 2024 a Mar 2025
