WYOMISSING, Pa.–(BUSINESS WIRE)–PENN Entertainment, Inc. (Nasdaq: PENN) today reported financial results for the three and six months ended June 30, 2024.
Jay Snowden, Chief Executive Officer and President, said: “Our retail properties delivered solid results this quarter as our best-in-class team of operators continues to execute across our diverse portfolio of market leading assets. In our Interactive segment, top-of-funnel growth, improved risk and trading execution, and refined promotional strategies contributed to better-than-expected revenue and Adjusted EBITDA results.
Healthy Retail Business
Property level highlights1:
- Revenues of $1.4 billion;
- Adjusted EBITDAR of $496.6 million; and
- Adjusted EBITDAR margins of 34.8%.
“Our retail business remained stable as consistent consumer trends, our diverse portfolio, and recent capital investments offset known, new supply in certain markets,” said Mr. Snowden. “We remain focused on database growth and driving engagement through new technology, continued investment in our gaming and non-gaming offerings, and local and national partnerships related to our food and beverage offerings. Cross-sell opportunities from our ESPN BET customers remain a key growth driver for us, as our PENN Play™ database has grown to approximately 31 million members, including 3.8 million in our digital database, which is an increase of more than 80% since the launch of ESPN BET. We are also making solid progress on our four development projects, all of which remain on budget and on schedule.
Interactive Business Benefits from Operational Improvements
Interactive segment highlights:
- Revenues of $232.6 million (including tax gross up of $82.1 million); and
- Adjusted EBITDA loss of $102.8 million.
“In our Interactive segment, we delivered record quarterly gaming revenue driven by enhanced risk and trading processes and deliberate reinvestment strategies. We will maintain our disciplined approach to customer engagement when we launch ESPN BET in New York in late August2, where we will benefit from ESPN’s extensive linear and digital reach. We recently began the rollout of our ESPN BET product enhancements and will launch the remaining key upgrades prior to the start of college football and our launch in New York. In parallel, our partners at ESPN are expanding our unique ESPN BET media integrations, including those with ESPN’s leading fantasy football product which boasts over 12 million active users.”
1 Property level consists of retail operating segments which are composed of our Northeast, South, West, and Midwest reportable segments.
2 Subject to regulatory approvals.
Liquidity and Financial Position
Total liquidity as of June 30, 2024 was $1.9 billion inclusive of $877.6 million in Cash and cash equivalents. Traditional net debt as of the end of the quarter was $1.7 billion.
ESG – Caring for our People, our Communities and our Planet
“We are proud to report that the PENN Diversity Scholarship Fund awarded over $1 million in scholarships to children of our team members in the quarter, and we look forward to celebrating the graduating class of 44 scholars from the inaugural year of the program. This quarter we also kicked off our annual corporate ‘Days of Listening’ to gather feedback from team members on all matters of diversity and inclusion. Finally, we were honored to be named as one of the ‘Best of the Best 2024 Top Diverse Employer’ by Diversity Magazine,” concluded Mr. Snowden.
Summary of Second Quarter Results
|
|
For the three months ended |
|||||
|
(in millions, except per share data, unaudited) |
|
2024 |
|
|
2023 |
|
|
Revenues |
$ |
1,663.0 |
|
|
$ |
1,674.8 |
|
Net income (loss) |
$ |
(27.1 |
) |
|
$ |
78.1 |
|
|
|
|
|
|||
|
Adjusted EBITDA (1) |
$ |
212.1 |
|
|
$ |
330.4 |
|
Rent expense associated with triple net operating leases (2) |
|
154.9 |
|
|
|
146.4 |
|
Adjusted EBITDAR (1) |
$ |
367.0 |
|
|
$ |
476.8 |
|
Cash payments to our REIT Landlords under Triple Net Leases (3) |
$ |
237.2 |
|
|
$ |
234.2 |
|
|
|
|
|
|||
|
Diluted earnings (loss) per common share |
$ |
(0.18 |
) |
|
$ |
0.48 |
| (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 unaudited Consolidated Statement 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 earnings (loss) per share (“EPS”) to Adjusted EPS (approximate EPS impact shown, per share; positive adjustments represent charges to income):
|
|
For the three months ended June 30, |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Diluted earnings (loss) per share |
$ |
(0.18 |
) |
|
$ |
0.48 |
|
|
Insurance recoveries, net of deductible charges |
|
(0.02 |
) |
|
|
(0.08 |
) |
|
Loss on disposal of assets |
|
0.06 |
|
|
|
— |
|
|
Transaction related expenses |
|
0.01 |
|
|
|
0.04 |
|
|
Legal matters inclusive of litigation settlements |
|
(0.05 |
) |
|
|
(0.05 |
) |
|
Non-operating items: |
|
|
|
||||
|
Loss (gain) related to debt and equity investments |
|
0.03 |
|
|
|
(0.04 |
) |
|
Other income |
|
(0.03 |
) |
|
|
— |
|
|
Income tax impact on net income (loss) adjustments (1) |
|
— |
|
|
|
0.03 |
|
|
Adjusted EPS |
$ |
(0.18 |
) |
|
$ |
0.38 |
|
| (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 three months ended |
|
For the six months ended |
||||||||||||
|
(in millions, unaudited) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Revenues: |
|
|
|
|
|
|
|
||||||||
|
Northeast segment (1) |
$ |
696.3 |
|
|
$ |
688.0 |
|
|
$ |
1,381.0 |
|
|
$ |
1,388.5 |
|
|
South segment (2) |
|
298.2 |
|
|
|
308.3 |
|
|
|
596.7 |
|
|
|
623.1 |
|
|
West segment (3) |
|
135.3 |
|
|
|
130.0 |
|
|
|
264.1 |
|
|
|
259.7 |
|
|
Midwest segment (4) |
|
298.1 |
|
|
|
293.3 |
|
|
|
589.3 |
|
|
|
588.6 |
|
|
Interactive (5) |
|
232.6 |
|
|
|
257.5 |
|
|
|
440.3 |
|
|
|
491.0 |
|
|
Other (6) |
|
5.9 |
|
|
|
6.2 |
|
|
|
11.9 |
|
|
|
12.0 |
|
|
Intersegment eliminations (7) |
|
(3.4 |
) |
|
|
(8.5 |
) |
|
|
(13.4 |
) |
|
|
(14.8 |
) |
|
Total revenues |
$ |
1,663.0 |
|
|
$ |
1,674.8 |
|
|
$ |
3,269.9 |
|
|
$ |
3,348.1 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted EBITDAR: |
|
|
|
|
|
|
|
||||||||
|
Northeast segment (1) |
$ |
204.7 |
|
|
$ |
217.3 |
|
|
$ |
407.3 |
|
|
$ |
430.2 |
|
|
South segment (2) |
|
111.4 |
|
|
|
120.9 |
|
|
|
224.9 |
|
|
|
244.5 |
|
|
West segment (3) |
|
50.6 |
|
|
|
49.6 |
|
|
|
96.5 |
|
|
|
98.7 |
|
|
Midwest segment (4) |
|
129.9 |
|
|
|
127.1 |
|
|
|
246.9 |
|
|
|
252.7 |
|
|
Interactive (5) |
|
(102.8 |
) |
|
|
(12.8 |
) |
|
|
(298.8 |
) |
|
|
(18.5 |
) |
|
Other (6) |
|
(26.8 |
) |
|
|
(25.3 |
) |
|
|
(53.6 |
) |
|
|
(52.6 |
) |
|
Total Adjusted EBITDAR (8) |
$ |
367.0 |
|
|
$ |
476.8 |
|
|
$ |
623.2 |
|
|
$ |
955.0 |
|
| (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 the 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 $82.1 million and $88.5 million for the three months ended June 30, 2024 and 2023, respectively, and $198.7 million and $180.8 million for the six months ended June 30, 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 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 $24.5 million and $24.8 million for the three months ended June 30, 2024 and 2023, respectively, and $49.4 million and $51.1 million for the six months ended June 30, 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 |
|||||||||||||||
|
|
For the three months |
|
For the six months |
||||||||||||
|
(in millions, unaudited) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net income (loss) |
$ |
(27.1 |
) |
|
$ |
78.1 |
|
|
$ |
(142.0 |
) |
|
$ |
592.5 |
|
|
Income tax (benefit) expense |
|
(3.2 |
) |
|
|
34.7 |
|
|
|
(15.8 |
) |
|
|
202.6 |
|
|
Interest expense, net |
|
119.4 |
|
|
|
115.6 |
|
|
|
238.5 |
|
|
|
228.6 |
|
|
Interest income |
|
(5.8 |
) |
|
|
(9.9 |
) |
|
|
(12.9 |
) |
|
|
(20.3 |
) |
|
Income from unconsolidated affiliates |
|
(7.8 |
) |
|
|
(7.2 |
) |
|
|
(15.0 |
) |
|
|
(9.8 |
) |
|
Gain on Barstool Acquisition, net (1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(83.4 |
) |
|
Gain on REIT transactions, net (2) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(500.8 |
) |
|
Other |
|
(1.0 |
) |
|
|
(5.8 |
) |
|
|
0.3 |
|
|
|
(4.8 |
) |
|
Operating income |
|
74.5 |
|
|
|
205.5 |
|
|
|
53.1 |
|
|
|
404.6 |
|
|
Stock-based compensation |
|
14.2 |
|
|
|
19.7 |
|
|
|
26.1 |
|
|
|
36.2 |
|
|
Cash-settled stock-based awards variance (3) |
|
(3.1 |
) |
|
|
(6.2 |
) |
|
|
(11.1 |
) |
|
|
(9.1 |
) |
|
Loss on disposal of assets |
|
9.1 |
|
|
|
— |
|
|
|
8.9 |
|
|
|
— |
|
|
Contingent purchase price |
|
— |
|
|
|
0.2 |
|
|
|
— |
|
|
|
0.5 |
|
|
Depreciation and amortization |
|
109.1 |
|
|
|
110.6 |
|
|
|
217.8 |
|
|
|
218.1 |
|
|
Insurance recoveries, net of deductible charges |
|
(2.7 |
) |
|
|
(13.6 |
) |
|
|
(2.7 |
) |
|
|
(13.6 |
) |
|
Income from unconsolidated affiliates |
|
7.8 |
|
|
|
7.2 |
|
|
|
15.0 |
|
|
|
9.8 |
|
|
Non-operating items of equity method investments (4) |
|
1.0 |
|
|
|
0.9 |
|
|
|
2.1 |
|
|
|
5.4 |
|
|
Other expenses (5) |
|
2.2 |
|
|
|
6.1 |
|
|
|
4.3 |
|
|
|
10.7 |
|
|
Adjusted EBITDA |
|
212.1 |
|
|
|
330.4 |
|
|
|
313.5 |
|
|
|
662.6 |
|
|
Rent expense associated with triple net operating leases |
|
154.9 |
|
|
|
146.4 |
|
|
|
309.7 |
|
|
|
292.4 |
|
|
Adjusted EBITDAR |
$ |
367.0 |
|
|
$ |
476.8 |
|
|
$ |
623.2 |
|
|
$ |
955.0 |
|
|
Net income (loss) margin |
|
(1.6 |
)% |
|
|
4.7 |
% |
|
|
(4.3 |
)% |
|
|
17.7 |
% |
|
Adjusted EBITDAR margin |
|
22.1 |
% |
|
|
28.5 |
% |
|
|
19.1 |
% |
|
|
28.5 |
% |
| (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) |
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. |
|
| (4) |
Consists 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. |
|
| (5) |
Consists of non-recurring acquisition and transaction costs and finance transformation costs associated with the implementation of our new Enterprise Resource Management system. |
|
|
PENN ENTERTAINMENT, INC. AND SUBSIDIARIES |
|||||||||||||||
|
|
For the three months |
|
For the six months |
||||||||||||
|
(in millions, except per share data, unaudited) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Revenues |
|
|
|
|
|
|
|
||||||||
|
Gaming |
$ |
1,332.3 |
|
|
$ |
1,292.8 |
|
|
$ |
2,590.6 |
|
|
$ |
2,617.4 |
|
|
Food, beverage, hotel, and other |
|
330.7 |
|
|
|
382.0 |
|
|
|
679.3 |
|
|
|
730.7 |
|
|
Total revenues |
|
1,663.0 |
|
|
|
1,674.8 |
|
|
|
3,269.9 |
|
|
|
3,348.1 |
|
|
Operating expenses |
|
|
|
|
|
|
|
||||||||
|
Gaming |
|
871.1 |
|
|
|
710.6 |
|
|
|
1,750.6 |
|
|
|
1,440.1 |
|
|
Food, beverage, hotel, and other |
|
219.6 |
|
|
|
267.8 |
|
|
|
470.8 |
|
|
|
512.1 |
|
|
General and administrative |
|
388.7 |
|
|
|
380.3 |
|
|
|
777.6 |
|
|
|
773.2 |
|
|
Depreciation and amortization |
|
109.1 |
|
|
|
110.6 |
|
|
|
217.8 |
|
|
|
218.1 |
|
|
Total operating expenses |
|
1,588.5 |
|
|
|
1,469.3 |
|
|
|
3,216.8 |
|
|
|
2,943.5 |
|
|
Operating income |
|
74.5 |
|
|
|
205.5 |
|
|
|
53.1 |
|
|
|
404.6 |
|
|
Other income (expenses) |
|
|
|
|
|
|
|
||||||||
|
Interest expense, net |
|
(119.4 |
) |
|
|
(115.6 |
) |
|
|
(238.5 |
) |
|
|
(228.6 |
) |
|
Interest income |
|
5.8 |
|
|
|
9.9 |
|
|
|
12.9 |
|
|
|
20.3 |
|
|
Income from unconsolidated affiliates |
|
7.8 |
|
|
|
7.2 |
|
|
|
15.0 |
|
|
|
9.8 |
|
|
Gain on Barstool Acquisition, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
83.4 |
|
|
Gain on REIT transactions, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
500.8 |
|
|
Other |
|
1.0 |
|
|
|
5.8 |
|
|
|
(0.3 |
) |
|
|
4.8 |
|
|
Total other income (expenses) |
|
(104.8 |
) |
|
|
(92.7 |
) |
|
|
(210.9 |
) |
|
|
390.5 |
|
|
Income (loss) before income taxes |
|
(30.3 |
) |
|
|
112.8 |
|
|
|
(157.8 |
) |
|
|
795.1 |
|
|
Income tax benefit (expense) |
|
3.2 |
|
|
|
(34.7 |
) |
|
|
15.8 |
|
|
|
(202.6 |
) |
|
Net income (loss) |
|
(27.1 |
) |
|
|
78.1 |
|
|
|
(142.0 |
) |
|
|
592.5 |
|
|
Less: Net loss attributable to non-controlling interest |
|
0.3 |
|
|
|
0.3 |
|
|
|
0.5 |
|
|
|
0.4 |
|
|
Net income (loss) attributable to PENN Entertainment, Inc. |
$ |
(26.8 |
) |
|
$ |
78.4 |
|
|
$ |
(141.5 |
) |
|
$ |
592.9 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Earnings per share: |
|
|
|
|
|
|
|
||||||||
|
Basic earnings (loss) per share |
$ |
(0.18 |
) |
|
$ |
0.51 |
|
|
$ |
(0.93 |
) |
|
$ |
3.86 |
|
|
Diluted earnings (loss) per share |
$ |
(0.18 |
) |
|
$ |
0.48 |
|
|
$ |
(0.93 |
) |
|
$ |
3.54 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted-average common shares outstanding—basic |
|
152.1 |
|
|
|
152.8 |
|
|
|
152.0 |
|
|
|
153.0 |
|
|
Weighted-average common shares outstanding—diluted |
|
152.1 |
|
|
|
167.9 |
|
|
|
152.0 |
|
|
|
168.2 |
|
|
Selected Financial Information and GAAP to Non-GAAP Reconciliations |
|||||||
|
(in millions, unaudited) |
June 30, |
|
December 31, |
||||
|
Cash and cash equivalents |
$ |
877.6 |
|
|
$ |
1,071.8 |
|
|
|
|
|
|
||||
|
Total traditional debt |
$ |
2,614.8 |
|
|
$ |
2,643.7 |
|
|
Less: Cash and cash equivalents |
|
(877.6 |
) |
|
|
(1,071.8 |
) |
|
Traditional net debt (1) |
$ |
1,737.2 |
|
|
$ |
1,571.9 |
|
|
|
|
|
|
||||
|
Amended Revolving Credit Facility due 2027 |
$ |
— |
|
|
$ |
— |
|
|
Amended Term Loan A Facility due 2027 |
|
495.0 |
|
|
|
508.8 |
|
|
Amended Term Loan B Facility due 2029 |
|
980.0 |
|
|
|
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 (2) |
|
9.3 |
|
|
|
19.4 |
|
|
Total traditional debt |
|
2,614.8 |
|
|
|
2,643.7 |
|
|
Financing obligation (3) |
|
176.1 |
|
|
|
154.1 |
|
|
Less: Debt discounts and debt issuance costs |
|
(30.5 |
) |
|
|
(32.2 |
) |
|
|
$ |
2,760.4 |
|
|
$ |
2,765.6 |
|
|
|
|
|
|
||||
|
Total traditional debt |
$ |
2,614.8 |
|
|
$ |
2,643.7 |
|
|
Less: Cash and cash equivalents |
|
(877.6 |
) |
|
|
(1,071.8 |
) |
|
Plus: Cash rent payments to REIT landlords for the trailing twelve months (4) |
|
7,547.2 |
|
|
|
7,502.4 |
|
|
|
$ |
9,284.4 |
|
|
$ |
9,074.3 |
|
|
|
|
|
|
||||
|
Adjusted EBITDAR for the trailing twelve months |
$ |
1,180.8 |
|
|
$ |
1,512.6 |
|
|
|
|
|
|
||||
|
Lease-adjusted net leverage ratio (1) |
7.9x |
|
6.0x |
||||
|
Traditional net leverage (1) |
7.3x |
|
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) |
Other long-term obligations as of June 30, 2024 primarily relates to our repayment obligation on a hotel and event center located near Hollywood Casino Lawrenceburg. |
|
| (3) |
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.” |
|
| (4) |
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 three months |
|
For the six months |
||||||||
|
(in millions, unaudited) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
Cash payments to our REIT Landlords under Triple Net Leases |
$ |
237.2 |
|
$ |
234.2 |
|
$ |
473.0 |
|
$ |
467.4 |
|
Cash payments related to income taxes, net |
$ |
0.3 |
|
$ |
64.9 |
|
$ |
0.9 |
|
$ |
66.0 |
|
Cash paid for interest on traditional debt |
$ |
33.1 |
|
$ |
32.4 |
|
$ |
82.2 |
|
$ |
78.8 |
|
Capital expenditures |
$ |
88.2 |
|
$ |
69.6 |
|
$ |
129.6 |
|
$ |
132.8 |
About PENN Entertainment
PENN Entertainment, Inc., together with its subsidiaries (“PENN,” the “Company,” “we,” “our,” or “us”), is North America’s leading provider of integrated entertainment, sports content, and casino gaming experiences. PENN operates 43 properties in 20 states, online sports betting in 19 jurisdictions and iCasino in five jurisdictions, under a portfolio of well-recognized brands including Hollywood Casino®, L’Auberge®, ESPN BET™ and theScore BET Sportsbook and Casino®. In August 2023, PENN entered into a transformative, exclusive long-term strategic alliance with ESPN, Inc. and ESPN Enterprises, Inc. (together, “ESPN”) relating to online sports betting within the United States. PENN’s ability to leverage the leading sports media brands in the United States (ESPN) and Canada (theScore) is central to our highly differentiated strategy to expand our footprint and efficiently grow our customer ecosystem. The Company’s focus on organic cross-sell opportunities is reinforced by our 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’s portfolio is further bolstered by our industry-leading PENN Play™ customer loyalty program, which offers our approximately 31 million members a unique set of rewards and experiences across business channels.
