WYOMISSING, Pa.–(BUSINESS WIRE)–PENN Entertainment, Inc. (Nasdaq: PENN) today reported financial results for the three and nine months ended September 30, 2024.
Jay Snowden, Chief Executive Officer and President, said: “PENN’s third quarter results were consistent with the preliminary estimates we disclosed last month in connection with our investor event in Las Vegas. Stable consumer demand in our retail business was offset by unfavorable hold in our Northeast segment and volume declines in our South segment associated with severe weather disruptions and accelerated hotel remodeling. The fourth quarter is off to a stronger start, led by several markets including Michigan, Ohio, and St. Louis. In the third quarter, our Interactive segment benefited from better-than-expected hold, driven by a higher parlay mix from our improving product and lower promotional expenses. Additionally, on October 30th, we launched account linking between ESPN BET and ESPN, which is foundational for creating a personalized sports betting experience across the ESPN ecosystem.
Stable Consumer Demand
Property level highlights1:
- Revenues of $1.4 billion;
- Adjusted EBITDAR of $471.7 million; and
- Adjusted EBITDAR margins of 33.8%.
“Core business trends were stable through October, supported by our enhanced offerings and best-in-class retail sportsbooks,” said Mr. Snowden. “We are mitigating ongoing pressures from known new supply in Nebraska, Louisiana, and Chicagoland by continuing to reimagine our properties to improve the customer experience and drive loyalty. During the quarter, we rebranded seven ESPN BET retail sportsbooks and accelerated our planned hotel room renovations at L’Auberge Casino Lake Charles. We are seeing higher value per customer from guests staying in the renovated rooms to-date, with the remainder expected to be completed through January of 2025. As disclosed last month during our investor event, our four development projects remain on budget and on schedule, with Hollywood Joliet expected to open ahead of schedule during the second half of 2025.
| _______________________________ | ||
|
1 |
Property level consists of retail operating segments which are composed of our Northeast, South, West, and Midwest reportable segments. |
|
Product Enhancements Driving Engagement
Interactive segment highlights:
- Revenues of $244.6 million (including tax gross up of $104.1 million); and
- Adjusted EBITDA loss of $90.9 million.
“Prior to the start of football season, we released several product enhancements and ESPN integrations to our ESPN BET offering. These product improvements helped contribute to a higher parlay mix and sportsbook hold during the third quarter. The September launch of ESPN BET in New York expanded our online sports betting footprint to 19 U.S. states, providing greater scale as we leverage ESPN’s vast media reach for efficient customer acquisition. Our progress continued through October with encouraging year-over-year performance across our online sports betting and iCasino operations. We remain excited for additional product enhancements coming soon as we deliver on our product roadmap. This includes our standalone iCasino app launch planned for Pennsylvania early in the first quarter of 2025 (pending final regulatory approval), with additional jurisdictions to follow.
Liquidity and Financial Position
Total liquidity as of September 30, 2024 was $1.8 billion inclusive of $834.0 million in Cash and cash equivalents. Traditional net debt as of the end of the quarter was $1.8 billion.
ESG – Caring for our People, our Communities and our Planet
“Our efforts to ensure diversity of backgrounds and perspectives within our Corporate boardroom have been recognized for the fourth straight year by the Forum of Executive Women, who named us as one of their ‘Champions of Board Diversity.’ In addition, we were named one of the ‘Best of the Best 2024 Top Diverse Employers’ by DiversityComm Magazine. On the environmental front, we were pleased to submit our inaugural CDP climate disclosure response.”
Summary of Third Quarter Results
|
|
For the three months ended September 30, |
||||||
|
(in millions, except per share data, unaudited) |
|
2024 |
|
|
|
2023 |
|
|
Revenues |
$ |
1,639.2 |
|
|
$ |
1,619.4 |
|
|
Net loss |
$ |
(37.5 |
) |
|
$ |
(725.1 |
) |
|
|
|
|
|
||||
|
Adjusted EBITDA (1) |
$ |
193.5 |
|
|
$ |
298.5 |
|
|
Rent expense associated with triple net operating leases (2) |
|
154.9 |
|
|
|
146.6 |
|
|
Adjusted EBITDAR (1) |
$ |
348.4 |
|
|
$ |
445.1 |
|
|
Cash payments to our REIT Landlords under Triple Net Leases (3) |
$ |
238.0 |
|
|
$ |
235.0 |
|
|
|
|
|
|
||||
|
Diluted loss per common share |
$ |
(0.24 |
) |
|
$ |
(4.80 |
) |
| (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 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 three months ended September 30, |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Diluted loss per share |
$ |
(0.24 |
) |
|
$ |
(4.80 |
) |
|
Business interruption insurance proceeds |
|
— |
|
|
|
(0.09 |
) |
|
Transaction related expenses |
|
0.01 |
|
|
|
0.10 |
|
|
Non-operating items: |
|
|
|
||||
|
Loss on disposal of Barstool |
|
— |
|
|
|
6.12 |
|
|
Gain related to debt and equity investments |
|
(0.02 |
) |
|
|
— |
|
|
Income tax impact on net loss adjustments (1) |
|
— |
|
|
|
(0.12 |
) |
|
Adjusted EPS |
$ |
(0.25 |
) |
|
$ |
1.21 |
|
|
(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. The income tax impact related to the loss on disposal of Barstool excludes the capital loss recognized, which can only be offset against capital gains. |
|
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 September 30, |
|
For the nine months ended September 30, |
||||||||||||
|
(in millions, unaudited) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Revenues: |
|
|
|
|
|
|
|
||||||||
|
Northeast segment (1) |
$ |
684.8 |
|
|
$ |
687.0 |
|
|
$ |
2,065.8 |
|
|
$ |
2,075.5 |
|
|
South segment (2) |
|
288.1 |
|
|
|
308.2 |
|
|
|
884.8 |
|
|
|
931.3 |
|
|
West segment (3) |
|
131.8 |
|
|
|
135.1 |
|
|
|
395.9 |
|
|
|
394.8 |
|
|
Midwest segment (4) |
|
292.2 |
|
|
|
293.4 |
|
|
|
881.5 |
|
|
|
882.0 |
|
|
Interactive (5) |
|
244.6 |
|
|
|
196.3 |
|
|
|
684.9 |
|
|
|
687.3 |
|
|
Other (6) |
|
4.0 |
|
|
|
4.5 |
|
|
|
15.9 |
|
|
|
16.5 |
|
|
Intersegment eliminations (7) |
|
(6.3 |
) |
|
|
(5.1 |
) |
|
|
(19.7 |
) |
|
|
(19.9 |
) |
|
Total revenues |
$ |
1,639.2 |
|
|
$ |
1,619.4 |
|
|
$ |
4,909.1 |
|
|
$ |
4,967.5 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted EBITDAR: |
|
|
|
|
|
|
|
||||||||
|
Northeast segment (1) |
$ |
199.3 |
|
|
$ |
208.3 |
|
|
$ |
606.6 |
|
|
$ |
638.5 |
|
|
South segment (2) |
|
106.4 |
|
|
|
136.6 |
|
|
|
331.3 |
|
|
|
381.1 |
|
|
West segment (3) |
|
47.5 |
|
|
|
54.7 |
|
|
|
144.0 |
|
|
|
153.4 |
|
|
Midwest segment (4) |
|
118.5 |
|
|
|
123.8 |
|
|
|
365.4 |
|
|
|
376.5 |
|
|
Interactive (5) |
|
(90.9 |
) |
|
|
(50.2 |
) |
|
|
(389.7 |
) |
|
|
(68.7 |
) |
|
Other (6) |
|
(32.4 |
) |
|
|
(28.1 |
) |
|
|
(86.0 |
) |
|
|
(80.7 |
) |
|
Total Adjusted EBITDAR (8) |
$ |
348.4 |
|
|
$ |
445.1 |
|
|
$ |
971.6 |
|
|
$ |
1,400.1 |
|
| (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 $104.1 million and $102.6 million for the three months ended September 30, 2024 and 2023, respectively, and $302.8 million and $283.4 million for the nine months ended September 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 $29.1 million and $27.0 million for the three months ended September 30, 2024 and 2023, respectively, and $78.5 million and $78.1 million for the nine months ended September 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 |
|||||||||||||||
|
Reconciliation of Comparable GAAP Financial Measure to Adjusted EBITDA, |
|||||||||||||||
|
Adjusted EBITDAR, and Adjusted EBITDAR Margin |
|||||||||||||||
|
|
For the three months ended September 30, |
|
For the nine months ended September 30, |
||||||||||||
|
(in millions, unaudited) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net loss |
$ |
(37.5 |
) |
|
$ |
(725.1 |
) |
|
$ |
(179.5 |
) |
|
$ |
(132.6 |
) |
|
Income tax (benefit) expense |
|
2.8 |
|
|
|
(161.7 |
) |
|
|
(13.0 |
) |
|
|
40.9 |
|
|
Interest expense, net |
|
118.4 |
|
|
|
117.5 |
|
|
|
356.9 |
|
|
|
346.1 |
|
|
Interest income |
|
(6.3 |
) |
|
|
(10.2 |
) |
|
|
(19.2 |
) |
|
|
(30.5 |
) |
|
Income from unconsolidated affiliates |
|
(7.1 |
) |
|
|
(7.2 |
) |
|
|
(22.1 |
) |
|
|
(17.0 |
) |
|
Gain on Barstool Acquisition, net (1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(83.4 |
) |
|
Gain on REIT transactions, net (2) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(500.8 |
) |
|
Other (income) expenses |
|
(2.8 |
) |
|
|
0.3 |
|
|
|
(2.5 |
) |
|
|
(4.5 |
) |
|
Operating income (loss) |
|
67.5 |
|
|
|
(786.4 |
) |
|
|
120.6 |
|
|
|
(381.8 |
) |
|
Loss on disposal of Barstool (3) |
|
— |
|
|
|
923.2 |
|
|
|
— |
|
|
|
923.2 |
|
|
Stock-based compensation |
|
12.9 |
|
|
|
35.2 |
|
|
|
39.0 |
|
|
|
71.4 |
|
|
Cash-settled stock-based awards variance (4) |
|
(3.8 |
) |
|
|
(2.9 |
) |
|
|
(14.9 |
) |
|
|
(12.0 |
) |
|
Loss (gain) on disposal of assets |
|
(0.1 |
) |
|
|
— |
|
|
|
8.8 |
|
|
|
— |
|
|
Contingent purchase price |
|
(1.1 |
) |
|
|
1.3 |
|
|
|
(1.1 |
) |
|
|
1.8 |
|
|
Depreciation and amortization |
|
108.7 |
|
|
|
105.8 |
|
|
|
326.5 |
|
|
|
323.9 |
|
|
Insurance recoveries, net of deductible charges |
|
— |
|
|
|
(0.3 |
) |
|
|
(2.7 |
) |
|
|
(13.9 |
) |
|
Income from unconsolidated affiliates |
|
7.1 |
|
|
|
7.2 |
|
|
|
22.1 |
|
|
|
17.0 |
|
|
Non-operating items of equity method investments (5) |
|
1.1 |
|
|
|
1.0 |
|
|
|
3.2 |
|
|
|
6.4 |
|
|
Other expenses (6) |
|
1.2 |
|
|
|
14.4 |
|
|
|
5.5 |
|
|
|
25.1 |
|
|
Adjusted EBITDA |
|
193.5 |
|
|
|
298.5 |
|
|
|
507.0 |
|
|
|
961.1 |
|
|
Rent expense associated with triple net operating leases |
|
154.9 |
|
|
|
146.6 |
|
|
|
464.6 |
|
|
|
439.0 |
|
|
Adjusted EBITDAR |
$ |
348.4 |
|
|
$ |
445.1 |
|
|
$ |
971.6 |
|
|
$ |
1,400.1 |
|
|
Net loss margin |
|
(2.3 |
)% |
|
|
(44.8 |
)% |
|
|
(3.7 |
)% |
|
|
(2.7 |
)% |
|
Adjusted EBITDAR margin |
|
21.3 |
% |
|
|
27.5 |
% |
|
|
19.8 |
% |
|
|
28.2 |
% |
| (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) |
Consists principally of interest expense, net, income taxes, depreciation and amortization, and stock-based compensation expense associated with Barstool prior to acquiring the remaining 64% of Barstool common stock and our Kansas Entertainment, LLC joint venture. |
|
| (6) |
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 |
|||||||||||||||
|
Consolidated Statements of Operations |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
|
|
For the three months ended September 30, |
|
For the nine months ended September 30, |
||||||||||||
|
(in millions, except per share data, unaudited) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Revenues |
|
|
|
|
|
|
|
||||||||
|
Gaming |
$ |
1,288.0 |
|
|
$ |
1,252.1 |
|
|
$ |
3,878.6 |
|
|
$ |
3,869.5 |
|
|
Food, beverage, hotel, and other |
|
351.2 |
|
|
|
367.3 |
|
|
|
1,030.5 |
|
|
|
1,098.0 |
|
|
Total revenues |
|
1,639.2 |
|
|
|
1,619.4 |
|
|
|
4,909.1 |
|
|
|
4,967.5 |
|
|
Operating expenses |
|
|
|
|
|
|
|
||||||||
|
Gaming |
|
826.1 |
|
|
|
709.0 |
|
|
|
2,576.7 |
|
|
|
2,149.1 |
|
|
Food, beverage, hotel, and other |
|
244.4 |
|
|
|
261.4 |
|
|
|
715.2 |
|
|
|
773.5 |
|
|
General and administrative |
|
392.5 |
|
|
|
406.4 |
|
|
|
1,170.1 |
|
|
|
1,179.6 |
|
|
Depreciation and amortization |
|
108.7 |
|
|
|
105.8 |
|
|
|
326.5 |
|
|
|
323.9 |
|
|
Loss on disposal of Barstool |
|
— |
|
|
|
923.2 |
|
|
|
— |
|
|
|
923.2 |
|
|
Total operating expenses |
|
1,571.7 |
|
|
|
2,405.8 |
|
|
|
4,788.5 |
|
|
|
5,349.3 |
|
|
Operating income (loss) |
|
67.5 |
|
|
|
(786.4 |
) |
|
|
120.6 |
|
|
|
(381.8 |
) |
|
Other income (expenses) |
|
|
|
|
|
|
|
||||||||
|
Interest expense, net |
|
(118.4 |
) |
|
|
(117.5 |
) |
|
|
(356.9 |
) |
|
|
(346.1 |
) |
|
Interest income |
|
6.3 |
|
|
|
10.2 |
|
|
|
19.2 |
|
|
|
30.5 |
|
|
Income from unconsolidated affiliates |
|
7.1 |
|
|
|
7.2 |
|
|
|
22.1 |
|
|
|
17.0 |
|
|
Gain on Barstool Acquisition, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
83.4 |
|
|
Gain on REIT transactions, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
500.8 |
|
|
Other |
|
2.8 |
|
|
|
(0.3 |
) |
|
|
2.5 |
|
|
|
4.5 |
|
|
Total other income (expenses) |
|
(102.2 |
) |
|
|
(100.4 |
) |
|
|
(313.1 |
) |
|
|
290.1 |
|
|
Loss before income taxes |
|
(34.7 |
) |
|
|
(886.8 |
) |
|
|
(192.5 |
) |
|
|
(91.7 |
) |
|
Income tax benefit (expense) |
|
(2.8 |
) |
|
|
161.7 |
|
|
|
13.0 |
|
|
|
(40.9 |
) |
|
Net loss |
|
(37.5 |
) |
|
|
(725.1 |
) |
|
|
(179.5 |
) |
|
|
(132.6 |
) |
|
Less: Net loss attributable to non-controlling interest |
|
0.8 |
|
|
|
0.3 |
|
|
|
1.3 |
|
|
|
0.7 |
|
|
Net loss attributable to PENN Entertainment, Inc. |
$ |
(36.7 |
) |
|
$ |
(724.8 |
) |
|
$ |
(178.2 |
) |
|
$ |
(131.9 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Loss per share: |
|
|
|
|
|
|
|
||||||||
|
Basic loss per share |
$ |
(0.24 |
) |
|
$ |
(4.80 |
) |
|
$ |
(1.17 |
) |
|
$ |
(0.87 |
) |
|
Diluted loss per share |
$ |
(0.24 |
) |
|
$ |
(4.80 |
) |
|
$ |
(1.17 |
) |
|
$ |
(0.87 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted-average common shares outstanding—basic |
|
152.2 |
|
|
|
150.9 |
|
|
|
152.1 |
|
|
|
152.3 |
|
|
Weighted-average common shares outstanding—diluted |
|
152.2 |
|
|
|
150.9 |
|
|
|
152.1 |
|
|
|
152.3 |
|
|
Selected Financial Information and GAAP to Non-GAAP Reconciliations |
|||||||
|
(in millions, unaudited) |
September 30, 2024 |
|
December 31, 2023 |
||||
|
Cash and cash equivalents |
$ |
834.0 |
|
|
$ |
1,071.8 |
|
|
|
|
|
|
||||
|
Total traditional debt |
$ |
2,605.4 |
|
|
$ |
2,643.7 |
|
|
Less: Cash and cash equivalents |
|
(834.0 |
) |
|
|
(1,071.8 |
) |
|
Traditional net debt (1) |
$ |
1,771.4 |
|
|
$ |
1,571.9 |
|
|
|
|
|
|
||||
|
Amended Revolving Credit Facility due 2027 |
$ |
— |
|
|
$ |
— |
|
|
Amended Term Loan A Facility due 2027 |
|
488.1 |
|
|
|
508.8 |
|
|
Amended Term Loan B Facility due 2029 |
|
977.5 |
|
|
|
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 |
|
2,605.4 |
|
|
|
2,643.7 |
|
|
Financing obligation (3) |
|
188.2 |
|
|
|
154.1 |
|
|
Less: Debt discounts and debt issuance costs |
|
(28.2 |
) |
|
|
(32.2 |
) |
|
|
$ |
2,765.4 |
|
|
$ |
2,765.6 |
|
|
|
|
|
|
||||
|
Total traditional debt |
$ |
2,605.4 |
|
|
$ |
2,643.7 |
|
|
Less: Cash and cash equivalents |
|
(834.0 |
) |
|
|
(1,071.8 |
) |
|
Plus: Cash rent payments to REIT landlords for the trailing twelve months (4) |
|
7,571.2 |
|
|
|
7,502.4 |
|
|
|
$ |
9,342.6 |
|
|
$ |
9,074.3 |
|
|
|
|
|
|
||||
|
Adjusted EBITDAR for the trailing twelve months |
$ |
1,084.1 |
|
|
$ |
1,512.6 |
|
|
|
|
|
|
||||
|
Lease-adjusted net leverage ratio (1) |
8.6x |
|
6.0x |
||||
|
Traditional net leverage (1) |
12.9x |
|
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 September 30, 2024 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 ended September 30, |
|
For the nine months ended September 30, |
||||||||||||
|
(in millions, unaudited) |
|
2024 |
|
|
|
2023 |
|
|
2024 |
|
|
|
2023 |
||
|
Cash payments to our REIT Landlords under Triple Net Leases |
$ |
238.0 |
|
|
$ |
235.0 |
|
$ |
711.0 |
|
|
$ |
702.4 |
||
|
Cash payments (refunds) related to income taxes, net |
$ |
(2.0 |
) |
|
$ |
7.9 |
|
$ |
(1.1 |
) |
|
$ |
73.9 |
||
|
Cash paid for interest on traditional debt |
$ |
46.5 |
|
|
$ |
49.1 |
|
$ |
128.7 |
|
|
$ |
127.9 |
||
|
Capital expenditures |
$ |
132.1 |
|
|
$ |
75.0 |
|
$ |
261.7 |
|
|
$ |
207.8 |
||
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 20 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 31 million members a unique set of rewards and experiences across business channels.
