Penn National Gaming Reports Second Quarter Operating Income of $198.4 Million, Net Income of $51.4 Million, Adjusted EBITDAR of $406.5 Million, and Adjusted EBITDA, After Lease Payments of $191.6 Million

– Increases 2019 Full Year Guidance and Raises Anticipated Pinnacle Cost Synergies to $120 Million –

– Provides Sports Betting and iGaming Update –

WYOMISSING, Pa.–(BUSINESS WIRE)–Penn National Gaming, Inc. (PENN: Nasdaq) (“Penn National” or the “Company”) today reported financial results for the three and six months ended June 30, 2019, initiated 2019 third quarter guidance, and increased full year 2019 guidance.

Timothy J. Wilmott, Chief Executive Officer, commented: “Penn National delivered a strong second quarter that exceeded our Adjusted EBITDAR guidance even without the partial quarter contribution from the Greektown Casino acquisition which closed in May and delivered revenues of $34.2 million and Adjusted EBITDAR of $9.2 million. Notably, our outperformance is inclusive of $1.0 million of costs associated with the June 30th closing of Resorts Casino Tunica as well as the negative impact from flooding at Argosy Casino Alton (closed for 49 days during the quarter), Ameristar Council Bluffs, and River City (we currently estimate revenues and Adjusted EBITDAR were impacted by $10.3 million and $5.4 million, respectively). Despite these headwinds, Adjusted EBITDAR margins improved 80 basis points year over year, which further highlights the significant and continued progress we are making with operating efficiencies. All told, we have updated our full year revenues guidance to $5.3 billion. We also raised our full year Adjusted EBITDAR guidance to $1.6 billion, which reflects the addition of Greektown Casino and the $5 million outperformance in the second quarter, slightly offset by the estimated impact from Hurricane Barry.”

2019 Second Quarter Financial Highlights:

  • Revenues of $1.32 billion, an increase of $496.2 million year over year;
  • Operating income of $198.4 million, an increase of $16.6 million year over year, with net income of $51.4 million and net income margin of 3.9%;
  • Adjusted EBITDAR of $406.5 million, an increase of $159.4 million year over year;
  • Adjusted EBITDAR margins of 30.7% marking an increase of 80 basis points year over year;
  • Adjusted EBITDA, after Lease Payments of $191.6 million, an increase of $60.4 million year over year; and
  • Traditional debt increased by $178.2 million during the quarter, principally due to borrowings under our senior secured credit facilities for the acquisition of Greektown. As of June 30, 2019, our GAAP traditional net debt ratio was 2.67x and net leverage on a lease-adjusted basis was 5.80x.

Pinnacle Synergies

“The integration of the Pinnacle properties continues to go extremely well,” said Mr. Wilmott. “We now expect to achieve at least $120 million of cost synergies (up from $115 million), with a run rate of at least $60 million in 2019. In addition, we are pleased to report that the combination of the Penn National and Pinnacle player loyalty programs onto a single platform is complete. We remain highly focused on driving revenue synergies through the relaunched mychoice program and we believe we are well-positioned to achieve incremental Adjusted EBITDAR associated with revenue synergies related to Pinnacle in the range of $15-$20 million. Most of these revenue synergies should be realized in 2020 and 2021.”

Sports Betting and iGaming

“Yesterday, we announced additional details regarding our sports betting and iGaming strategies and businesses,” said Mr. Wilmott. “Penn National entered into multi-year agreements with leading sports betting operators DraftKings, PointsBet, theScore, and The Stars Group for online sports betting and iGaming market access across the Company’s portfolio. In exchange for access to our non-primary licenses to conduct these operations, Penn National will receive a combination of upfront cash and equity, one-time market access fees, and ongoing revenue sharing. Penn Interactive Ventures will manage these relationships, in addition to controlling the Company’s primary sports betting and iGaming licenses in every state Penn operates.”

M&A and Development Projects

“On May 23rd, we completed the accretive acquisition of the operations of Greektown Casino in Detroit and welcomed approximately 1,700 team members to Penn National,” continued Mr. Wilmott. “The transaction was financed with incremental borrowings under our revolving credit facility. Simultaneous with the closing of the transaction, Penn National entered into a triple net lease agreement with VICI Properties Inc. (VICI: NYSE).”

“Our development projects in Pennsylvania, including the $120 million Hollywood Casino York and the $111 million Hollywood Casino Morgantown, remain on track. We received all the requisite approvals for the Morgantown project and have commenced construction activities there. We anticipate opening both facilities in the fourth quarter of 2020.”

Free Cash Flow Allocation

“In the second quarter, the Company repurchased approximately 1.3 million shares of its common stock at an average price per share of $19.55 for a total of $24.9 million,” said Mr. Wilmott. “The repurchases were made pursuant to the Company’s $200 million share repurchase program. During the quarter, the Company drew on its revolving credit facility to partially fund the Greektown Casino acquisition though we also repaid approximately $45 million of the revolver before the end of the quarter. The second quarter revolver repayment highlights our ability to generate growing free cash flow from our expanded scale as well as our commitment to de-levering following the consummation of this accretive acquisition. We remain focused on debt reduction and expect to achieve a lease-adjusted net leverage level of 5.0x to 5.5x by the end of 2020.”

Summary of Second Quarter Results

 

For the three months ended June 30,

(in millions, except per share data, unaudited)

2019 Actual (1)

 

2019 Guidance (2)

 

2018 Actual

Revenues

$

1,323.1

 

 

$

1,314.3

 

 

$

826.9

 

Net income

$

51.4

 

 

$

41.2

 

 

$

54.0

 

 

 

 

 

 

 

Adjusted EBITDAR (3)

$

406.5

 

 

$

392.2

 

 

$

247.1

 

Less: Lease Payments (3)

(214.9

)

 

(209.1

)

 

(115.9

)

Adjusted EBITDA, after Lease Payments (3)

$

191.6

 

 

$

183.1

 

 

$

131.2

 

 

 

 

 

 

 

Diluted earnings per common share

$

0.44

 

 

$

0.35

 

 

$

0.57

 

   

(1)

Includes the results of operations of Greektown for the period from May 23, 2019, the date of acquisition, through June 30, 2019.

   

(2)

As provided by Penn National on May 2, 2019, which did not include the results of operations of Greektown.

   

(3)

See the “Non-GAAP Financial Measures” section below for more information as well as the definitions of Adjusted EBITDAR; Lease Payments;

and Adjusted EBITDA, after Lease Payments. Additionally, see below for reconciliations of these Non-GAAP financial measures to their GAAP

equivalent financial measure.

Review of 2019 Second Quarter Results vs. Guidance

 

For the three months ended

June 30, 2019

(in millions, unaudited)

Pre-tax

 

Post-tax

Income, per guidance (1)

$

57.7

 

 

$

41.2

 

 

 

 

 

Adjusted EBITDAR favorable variances:

 

 

 

Greektown Casino-Hotel (2)

9.2

 

 

7.1

 

Performance of properties, exclusive of Greektown Casino-Hotel (2)(3)

3.9

 

 

3.0

 

Corporate overhead

1.1

 

 

0.8

 

Total Adjusted EBITDAR variances

14.2

 

 

10.9

 

 

 

 

 

Other favorable (unfavorable) variances (2):

 

 

 

Interest expense

(1.3

)

 

(1.0

)

Rent expense associated with triple net operating leases (4)

(5.5

)

 

(4.3

)

Depreciation and amortization

(4.2

)

 

(3.2

)

Cash-settled stock-based awards

3.4

 

 

2.6

 

Pre-opening and acquisition costs

(3.7

)

 

(2.8

)

Other

9.3

 

 

7.1

 

Income taxes

 

 

0.9

 

Income, as reported

$

69.9

 

 

$

51.4

 

   

(1)

As provided by Penn National on May 2, 2019, which did not include the results of operations of Greektown.

   

(2)

We acquired Greektown on May 23, 2019. As noted above, Greektown results of operations were not included in the guidance provided on May 2,

2019. Therefore, the variances to guidance above include the financial statement effects of Greektown for the period from May 23, 2019 through

June 30, 2019.

   

(3)

Offsetting the favorable performance of the properties is the negative impact from flooding at Argosy Casino Alton, Ameristar Council Bluffs,

and River City.

(4)

Includes the operating lease components of the Master Leases (primarily land), the Meadows Lease, the Margaritaville Lease, and the Greektown

Lease.

Financial Guidance for the 2019 Third Quarter and Full Year 2019

The Company’s third quarter and full year guidance targets reflect the anticipated impacts of several items, including ongoing bridge work in Lake Charles, Louisiana and the hotel and casino expansion at Monarch Casino in Black Hawk, Colorado. Also, the table below now includes the Greektown operations. In addition to these factors, the guidance is based on the following assumptions:

  • Corporate overhead expenses, which is net of allocations to our properties, of $97.0 million, with $25.1 million to be incurred in the third quarter;
  • Depreciation and amortization charges of $419.5 million, with $106.5 million in the third quarter;
  • Lease payments (which continue to be fully tax deductible) to our REIT landlords under our triple net leases of $869.1 million, with $222.7 million in the third quarter. This includes projected escalator payments of $0.9 million under the Penn triple net master lease with GLPI, no escalator under the Pinnacle triple net master lease with GLPI, and no escalator under the Meadows lease;
  • Maintenance capital expenditures of $188.4 million, with $65.8 million in the third quarter;
  • Project capital expenditures for Hollywood York of $15.0 million, with $4.8 million in the third quarter;
  • Project capital expenditures for Hollywood Morgantown of $21.5 million, with $5.0 million in the third quarter;
  • Cash interest on traditional debt of $124.6 million, with $38.2 million in the third quarter;
  • Interest expense of $536.2 million, with $134.7 million in the third quarter, inclusive of interest expense related to the finance lease components associated with our Master Leases;
  • Rent expense associated with our triple net operating leases with our REIT landlords of $368.4 million, with $96.8 million in the third quarter;
  • Cash taxes of $21.5 million, with $11.9 million in the third quarter;
  • Our share of non-operating items (such as depreciation and amortization expense) associated with our Kansas JV of $3.7 million, with $0.9 million to be incurred in the third quarter;
  • Estimated non-cash stock compensation expense of $13.7 million, with $3.5 million in the third quarter;
  • LIBOR is based on the forward yield curve;
  • A diluted share count of approximately 117.7 million; and,
  • There will be no material 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.

The guidance table below includes comparative prior period actual results.

 

For the three months

ending/ended September 30,

 

For the full year

ending/ended December 31,

(in millions, except per share data, unaudited)

2019

Guidance

 

2018

Actual

 

2019

Guidance

 

2018

Actual

Revenues

$

1,370.5

 

 

$

789.7

 

 

$

5,338.0

 

 

$

3,587.9

 

 

 

 

 

 

 

 

 

Net income attributable to Penn National

$

49.3

 

 

$

36.1

 

 

$

184.8

 

 

$

93.5

 

Net loss attributable to noncontrolling interest

 

 

 

 

(0.2

)

 

 

Net income

49.3

 

 

36.1

 

 

184.6

 

 

93.5

 

Income tax expense (benefit)

16.4

 

 

9.1

 

 

62.8

 

 

(3.6

)

Loss on early extinguishment of debt

 

 

0.3

 

 

 

 

21.0

 

Income from unconsolidated affiliates

(7.1

)

 

(5.7

)

 

(25.8

)

 

(22.3

)

Interest income

(0.2

)

 

(0.2

)

 

(1.1

)

 

(1.0

)

Interest expense

134.7

 

 

114.8

 

 

536.2

 

 

539.4

 

Other expense

0.6

 

 

1.4

 

 

1.0

 

 

7.1

 

Operating income

193.7

 

 

155.8

 

 

757.7

 

 

634.1

 

Rent expense associated with triple net operating leases(1)

96.8

 

 

 

 

368.4

 

 

3.8

 

Stock-based compensation

3.5

 

 

2.9

 

 

13.7

 

 

12.0

 

Cash-settled stock-based awards variance (2)

 

 

(1.7

)

 

(3.0

)

 

(19.6

)

Loss on disposal of assets

 

 

3.2

 

 

0.9

 

 

3.2

 

Contingent purchase price

0.3

 

 

0.4

 

 

6.4

 

 

0.5

 

Pre-opening and acquisition costs

 

 

5.2

 

 

8.1

 

 

95.0

 

Depreciation and amortization

106.5

 

 

56.9

 

 

419.5

 

 

269.0

 

Provision for loan loss and unfunded loan commitments, net of recoveries, and impairment losses

 

 

 

 

 

 

17.9

 

Insurance recoveries, net of deductible charges

 

 

 

 

 

 

(0.1

)

Income from unconsolidated affiliates

7.1

 

 

5.7

 

 

25.8

 

 

22.3

 

Non-operating items for Kansas JV (2)

0.9

 

 

1.3

 

 

3.7

 

 

5.1

 

Adjusted EBITDAR

$

408.8

 

 

$

229.7

 

 

$

1,601.2

 

 

$

1,043.2

 

Less: Lease Payments (3)

(222.7

)

 

(115.2

)

 

(869.1

)

 

(537.4

)

Adjusted EBITDA, after Lease Payments

$

186.1

 

 

$

114.5

 

 

$

732.1

 

 

$

505.8

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

$

0.42

 

 

$

0.38

 

 

$

1.57

 

 

$

0.93

 

   

 (1)

The three months ending September 30, 2019 and the year ending December 31, 2019, include rent expense associated with the operating lease components of the Master Leases (primarily land), the Meadows Lease, the Margaritaville Lease, and the Greektown Lease.

   

 (2)

For a description of these items, see “Non-GAAP Financial Measures” section below.

   

 (3)

The three months ending September 30, 2019 and the year ending December 31, 2019, include payments made to GLPI associated with the Company’s Master Leases and the Meadows Lease, as well as payments made to VICI associated with the Margaritaville Lease and the Greektown Lease.

PENN NATIONAL GAMING, INC. AND SUBSIDIARIES

Segment Information

During the fourth quarter 2018, the Company made revisions to its reportable segments upon the consummation of the Pinnacle acquisition in order to maintain alignment with its internal organizational structure. Apart from the addition of the new properties, the most significant change was dividing the South/West segment into two separate reportable segments. The three and six months ended June 30, 2018 have been restated to provide comparability, but do not reflect the pre-acquisition operating results of Pinnacle.

 

Revenues

 

Operating Income (Loss)

 

Adjusted EBITDAR

 

For the three months ended

June 30,

 

For the three months ended

June 30,

 

For the three months ended

June 30,

(in thousands, unaudited)

2019

 

2018

 

2019

 

2018

 

2019

 

2018

Northeast segment (1)

$

599,086

 

 

$

465,285

 

 

$

156,410

 

 

$

132,013

 

 

$

186,190

 

 

$

148,394

 

South segment (2)

282,188

 

 

62,618

 

 

72,319

 

 

17,827

 

 

92,761

 

 

20,545

 

West segment (3)

164,250

 

 

100,751

 

 

42,179

 

 

37,525

 

 

50,460

 

 

26,103

 

Midwest segment (4)

268,160

 

 

188,162

 

 

78,892

 

 

53,379

 

 

97,793

 

 

67,543

 

Other (5)

9,410

 

 

10,097

 

 

(151,420

)

 

(58,989

)

 

(20,747

)

 

(15,479

)

Total

$

1,323,094

 

 

$

826,913

 

 

$

198,380

 

 

$

181,755

 

 

$

406,457

 

 

$

247,106

 

 

Revenues

 

Operating Income (Loss)

 

Adjusted EBITDAR

 

For the six months ended

June 30,

 

For the six months ended

June 30,

 

For the six months ended

June 30,

(in thousands, unaudited)

2019

 

2018

 

2019

 

2018

 

2019

 

2018

Northeast segment (1)

$

1,149,664

 

 

$

924,004

 

 

$

298,587

 

 

$

259,433

 

 

$

350,944

 

 

$

293,371

 

South segment (2)

574,130

 

 

125,948

 

 

150,442

 

 

35,984

 

 

190,605

 

 

41,663

 

West segment (3)

322,904

 

 

198,717

 

 

83,997

 

 

55,254

 

 

100,383

 

 

50,034

 

Midwest segment (4)

539,422

 

 

373,696

 

 

159,862

 

 

107,167

 

 

197,012

 

 

135,728

 

Other (5)

19,545

 

 

20,633

 

 

(312,122

)

 

(103,949

)

 

(41,050

)

 

(31,144

)

Total

$

2,605,665

 

 

$

1,642,998

 

 

$

380,766

 

 

$

353,889

 

 

$

797,894

 

 

$

489,652

 

   

(1) 

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 at Penn National

Race Course, Hollywood Casino Toledo, Hollywood Gaming at Dayton Raceway, Hollywood Gaming at Mahoning Valley Race Course, Meadows

Racetrack and Casino, and Plainridge Park Casino. The financial information for the three and six months ended June 30, 2018 also includes the

Company’s Casino Rama management service contract, which terminated in July 2018. We acquired Greektown Casino-Hotel on May 23, 2019.

   

(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. Prior to its closure on June 30, 2019, Resorts Casino Tunica was also included in the South segment. We acquired

Margaritaville Resort Casino on January 1, 2019.

   

(3)

The West segment consists of the following properties: Ameristar Black Hawk, Cactus Petes and Horseshu, M Resort, Tropicana Las Vegas, and Zia

Park Casino. The financial information for the three and six months ended June 30, 2018 also includes the Company’s investments in and the

management contract of Hollywood Casino Jamul-San Diego, which terminated in May 2018.

(4)

The Other category consists of the Company’s standalone racing operations, namely Sanford-Orlando Kennel Club, and the Company’s joint

venture interests in Sam Houston Race Park, Valley Race Park, and Freehold Raceway. The Other category also includes Penn Interactive Ventures,

the Company’s interactive division which represents Penn National’s social gaming initiatives, our management contract for Retama Park

Racetrack, and our live and televised poker tournament series that operates under the trade name, Heartland Poker Tour. 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 consists of certain expenses, such as: payroll, professional fees,

travel expenses and other general and administrative expenses that do not directly relate to or have otherwise been allocated to a property. For the

three and six months ended June 30, 2019, corporate overhead costs were $23.6 million and $46.7 million, respectively, as compared to $18.6

million and $37.4 million, respectively, for the three and six months ended June 30, 2018.

(5)

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.

PENN NATIONAL GAMING, INC. AND SUBSIDIARIES

Supplemental Segment Information – Combined for

the Acquisitions of Pinnacle, Margaritaville, and Greektown

Although Penn National did not own Pinnacle, Margaritaville, or Greektown, during the periods presented below, the Company believes the following financial information is useful to investors to assess the value these transactions bring to the Company and its shareholders.

The following financial information for the three and six months ended June 30, 2018, shows (i) the Company’s reported operating results, (ii) the acquired Pinnacle properties and the acquired Margaritaville property and Greektown property for the pre-acquisition period, and (iii) the combined Company operating results for the pre-acquisition period as if the acquisitions of Pinnacle, Margaritaville, and Greektown, were completed on January 1, 2018. Combined Revenues and Combined Adjusted EBITDAR are non-GAAP financial measures. Further, the financial information below depicts the historical results of Penn National, Pinnacle, Margaritaville, and Greektown, and do not reflect any cost savings or revenue synergies from potential operating efficiencies or associated costs to achieve such savings or synergies that are expected to result from these transactions. See the “Non-GAAP Financial Measures” section below for more information as well as the definitions of Combined Revenues and Combined Adjusted EBITDAR. Additionally, see below for reconciliations of these Non-GAAP financial measures to their GAAP equivalent financial measure.

 

Revenues

 

Penn

National, as Reported

 

Pinnacle,

Margaritaville

and Greektown

Pre-Acquisition(1)

 

Combined

 

Penn

National, as Reported

 

Pinnacle,

Margaritaville

and Greektown

Pre-Acquisition(1)

 

Combined

(in thousands, unaudited)

For the three months ended June 30, 2018

 

For the six months ended June 30, 2018

Northeast (2)

$

465,285

 

 

$

208,059

 

 

$

673,344

 

 

$

924,004

 

 

$

408,339

 

 

$

1,332,343

 

South

62,618

 

 

230,623

 

 

293,241

 

 

125,948

 

 

459,824

 

 

585,772

 

West

100,751

 

 

62,554

 

 

163,305

 

 

198,717

 

 

122,200

 

 

320,917

 

Midwest

188,162

 

 

95,938

 

 

284,100

 

 

373,696

 

 

193,417

 

 

567,113

 

Other

10,097

 

 

1,308

 

 

11,405

 

 

20,633

 

 

2,418

 

 

23,051

 

Total

$

826,913

 

 

$

598,482

 

 

$

1,425,395

 

 

$

1,642,998

 

 

$

1,186,198

 

 

$

2,829,196

 

 

Adjusted EBITDAR

 

Penn

National, as

Reported

 

Pinnacle,

Margaritaville

and Greektown

Pre-Acquisition(1)

 

Combined

 

Penn

National, as

Reported

 

Pinnacle,

Margaritaville

and Greektown

Pre-Acquisition(1)

 

Combined

(in thousands, unaudited)

For the three months ended June 30, 2018

 

For the six months ended June 30, 2018

Northeast (3)

$

148,394

 

 

$

49,073

 

 

$

197,467

 

 

$

293,371

 

 

$

94,940

 

 

$

388,311

 

South

20,545

 

 

71,827

 

 

92,372

 

 

41,663

 

 

145,234

 

 

186,897

 

West

26,103

 

 

24,231

 

 

50,334

 

 

50,034

 

 

46,796

 

 

96,830

 

Midwest

67,543

 

 

35,592

 

 

103,135

 

 

135,728

 

 

72,755

 

 

208,483

 

Other

(15,479

)

 

(14,055

)

 

(29,534

)

 

(31,144

)

 

(28,353

)

 

(59,497

)

Total

$

247,106

 

 

$

166,668

 

 

$

413,774

 

 

$

489,652

 

 

$

331,372

 

 

$

821,024

 

     (1)

The operating results of Pinnacle were derived from historical financial information of Pinnacle, adjusted to exclude the operating results of the four divested properties, and the operating results of Margaritaville and Greektown were derived from historical financial information. In addition, the operating results were adjusted to conform to Penn National’s methodology of allocating certain corporate expenses to properties.

     (2)

Revenues specific to Greektown were $83,350 thousand and $163,904 thousand for the three and six months ended June 30, 2018, respectively.

     (3)

Adjusted EBITDAR specific to Greektown were $22,845 thousand and $44,787 thousand for the three and six months ended June 30, 2018, respectively.

 

PENN NATIONAL GAMING, INC. AND SUBSIDIARIES

Reconciliation of Comparable GAAP Financial Measure to Adjusted EBITDAR,

Adjusted EBITDA, after Lease Payments, and Adjusted EBITDAR Margin

 

 

For the three months ended

June 30,

 

For the six months ended

June 30,

(in thousands, unaudited)

2019

 

2018

 

2019

 

2018

Net income

$

51,357

 

 

$

53,988

 

 

$

92,344

 

 

$

99,425

 

Income tax expense

18,539

 

 

15,242

 

 

33,357

 

 

30,931

 

Loss on early extinguishment of debt

 

 

2,579

 

 

 

 

3,461

 

Income from unconsolidated affiliates

(6,255

)

 

(5,734

)

 

(11,942

)

 

(11,095

)

Interest income

(257

)

 

(241

)

 

(576

)

 

(490

)

Interest expense

135,039

 

 

115,873

 

 

267,626

 

 

231,613

 

Other expense (income)

(43

)

 

48

 

 

(43

)

 

44

 

Operating income

198,380

 

 

181,755

 

 

380,766

 

 

353,889

 

Rent expense associated with triple net operating leases(1)

90,025

 

 

 

 

174,755

 

 

 

Stock-based compensation

3,247

 

 

3,003

 

 

6,664

 

 

5,932

 

Cash-settled stock-based awards variance

(3,436

)

 

7,800

 

 

(2,964

)

 

338

 

Loss (gain) on disposal of assets

371

 

 

(52

)

 

893

 

 

3

 

Contingent purchase price

1,040

 

 

202

 

 

5,757

 

 

1,337

 

Pre-opening and acquisition costs

3,700

 

 

5,879

 

 

8,080

 

 

11,972

 

Depreciation and amortization

106,020

 

 

58,559

 

 

210,073

 

 

118,949

 

Recoveries on loan loss and unfunded loan commitments, net of impairment losses

 

 

(16,985

)

 

 

 

(16,367

)

Insurance recoveries, net of deductible charges

 

 

(68

)

 

 

 

(68

)

Income from unconsolidated affiliates

6,255

 

 

5,734

 

 

11,942

 

 

11,095

 

Non-operating items for Kansas JV

855

 

 

1,279

 

 

1,928

 

 

2,572

 

Adjusted EBITDAR

$

406,457

 

 

$

247,106

 

 

$

797,894

 

 

$

489,652

 

Less: Lease Payments

(214,822

)

 

(115,916

)

 

(422,788

)

 

(231,790

)

Adjusted EBITDA, after Lease Payments

$

191,635

 

 

$

131,190

 

 

$

375,106

 

 

$

257,862

 

Net income margin

3.9

%

 

6.5

%

 

3.5

%

 

6.0

%

Adjusted EBITDAR margin

30.7

%

 

29.9

%

 

30.6

%

 

29.8

%

Contacts

William J. Fair

Chief Financial Officer

610-373-2400

Joseph N. Jaffoni, Richard Land

JCIR

212-835-8500 or penn@jcir.com

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