Latest news with #JaySnowden
Yahoo
28-05-2025
- Business
- Yahoo
New Hollywood Casino Joliet set to open earlier than expected
A new Chicago-area casino is getting ready to open this summer – months ahead of schedule. Hollywood Casino Joliet, which is leaving its longtime riverboat home, announced Wednesday it is planning to move into its new land-based facility Aug. 11, pending regulatory approval. 'The countdown to the opening of our newest casino begins today,' Jay Snowden, Penn Entertainment's CEO and president, said in a news release. 'The move from our existing riverboat significantly improves our offerings in the highly attractive Chicagoland market, and both our existing customers and new guests will be able to enjoy premier gaming, dining, and entertainment at this exceptionally accessible new location.' Construction is nearing completion on the new $185 million Hollywood Casino Joliet in the Rock Run Collection, a sprawling 310-acre mixed-use development adjacent to the Interstate 80 and Interstate 55 interchange. The facility will feature expanded gaming, with 1,000 slots, 43 table games, a retail sportsbook, a 10,000-square-foot event center and restaurants. The casino, which broke ground in December 2023, was initially projected to open at the end of this year. Penn is also building a new land-based entertainment complex for Hollywood Casino Aurora, which is slated to open next year. The $360 million facility is going up near I-88 and Chicago Premium Outlets mall and will include 1,200 gaming positions, a 220-room hotel, a retail sportsbook, a spa, an outdoor entertainment area, a 12,000-square-foot event center and restaurants. Both casinos will offer new Italian restaurants in partnership with Giada De Laurentiis, and food halls featuring the first suburban locations for Antique Taco and Pretty Cool Ice Cream, as well as Lucky Goat, a new burger restaurant by celebrity chef Stephanie Izard. The restaurants are expected to open in time to feed the first gamblers at Hollywood Casino Joliet in August, pending approval by the Illinois Gaming Board, a Penn spokesperson said. Launched in the 1990s when the state legalized riverboat casinos, both Joliet and Aurora are still operating as permanently moored barges on the Des Plaines and Fox rivers, respectively. The state's sweeping 2019 gambling expansion bill, which added everything from six new casinos to sports betting, allowed all casinos to be built on or moved to dry land. Rivers Des Plaines became the first to convert to a land-based casino, paying a $250,000 Gaming Board fee in 2020 to expand beyond an underground pool on which it was built. The state's newer casinos, including Bally's Chicago, Wind Creek Chicago Southland and Hard Rock Rockford, are all land-based. Rivers Casino Des Plaines was once again the state's top casino in April with $43.9 million in adjusted gross receipts, followed by newcomer Wind Creek, which hit a new high with $17.1 million in revenue, according to Gaming Board data. Wind Creek, owned by the Poarch Band of Creek Indians, launched in its permanent 70,000-square-foot casino in south suburban East Hazel Crest in November. Last month, it opened a 255-room hotel. In May 2022, Rhode Island-based Bally's was selected to build the Chicago casino at the site of the former Tribune printing plant in River West, a $1.7 billion proposal that includes an exhibition hall, a 500-room hotel, a 3,000-seat theater, 10 restaurants and 4,000 gaming positions. The casino is expected to open in September 2026. Work was temporarily halted May 1 after the Gaming Board discovered the construction project was using an unauthorized subcontracted waste hauler previously alleged to have had ties to organized crime. The agency gave Bally's Chicago the green light to resume construction May 15 with a new vendor vetting and disclosure process in place. Bally's, which has been operating a temporary casino at Medinah Temple since September 2023, was ranked fifth among the state's 16 full casinos with $11 million in adjusted gross receipts last month, according to data from the Gaming Board. Hollywood Casino Aurora ranked eighth in revenue during April at $8.3 million and Hollywood Casino Joliet was 10th at $7.1 million, according to Gaming Board data. rchannick@
Chicago Tribune
28-05-2025
- Business
- Chicago Tribune
New Hollywood Casino Joliet set to open earlier than expected
A new Chicago-area casino is getting ready to open this summer – months ahead of schedule. Hollywood Casino Joliet, which is leaving its longtime riverboat home, announced Wednesday it is planning to move into its new land-based facility on Aug. 11, pending regulatory approval. 'The countdown to the opening of our newest casino begins today,' Jay Snowden, Penn Entertainment's CEO and president, said in a news release. 'The move from our existing riverboat significantly improves our offerings in the highly attractive Chicagoland market, and both our existing customers and new guests will be able to enjoy premier gaming, dining, and entertainment at this exceptionally accessible new location.' Construction is nearing completion on the new $185 million Hollywood Casino Joliet in the Rock Run Collection, a sprawling 310-acre mixed-use development adjacent to the Interstate 80 and Interstate 55 interchange. The facility will feature expanded gaming, with 1,000 slots, 43 table games, a retail sportsbook, a 10,000-square-foot event center and restaurants. The casino, which broke ground in December 2023, was initially projected to open at the end of this year. Penn is also building a new land-based entertainment complex for Hollywood Casino Aurora, which is slated to open next year. The $360 million facility is going up near I-88 and Chicago Premium Outlets mall and will include 1,200 gaming positions, a 220-room hotel, a retail sportsbook, a spa, an outdoor entertainment area, a 12,000-square-foot event center and restaurants. Both casinos will offer new Italian restaurants in partnership with Giada De Laurentiis, and food halls featuring the first suburban locations for Antique Taco and Pretty Cool Ice Cream, as well as Lucky Goat, a new burger restaurant by celebrity chef Stephanie Izard. The restaurants are expected to open in time to feed the first gamblers at Hollywood Casino Joliet in August, pending approval by the Illinois Gaming Board, a Penn spokesperson said. Launched in the 1990s when the state legalized riverboat casinos, both Joliet and Aurora are still operating as permanently moored barges on the Des Plaines and Fox rivers, respectively. The state's sweeping 2019 gambling expansion bill, which added everything from six new casinos to sports betting, allowed all casinos to be built on or moved to dry land. Rivers Des Plaines became the first to convert to a land-based casino, paying a $250,000 Gaming Board fee in 2020 to expand beyond an underground pool on which it was built. The state's newer casinos, including Bally's Chicago, Wind Creek Chicago Southland and Hard Rock Rockford, are all land-based. Rivers Casino Des Plaines was once again the state's top casino in April with $43.9 million in adjusted gross receipts, followed by newcomer Wind Creek, which hit a new high with $17.1 million in revenue, according to Gaming Board data. Wind Creek, owned by the Poarch Band of Creek Indians, launched in its permanent 70,000-square-foot casino in south suburban East Hazel Crest in November. Last month, it opened a 255-room hotel. In May 2022, Rhode Island-based Bally's was selected to build the Chicago casino at the site of the former Tribune printing plant in River West, a $1.7 billion proposal that includes an exhibition hall, a 500-room hotel, a 3,000-seat theater, 10 restaurants and 4,000 gaming positions. The casino is expected to open in September 2026. Work was temporarily shut down May 1 after the Gaming Board discovered the construction project was using an unauthorized subcontracted waste hauler previously alleged to have had ties to organized crime. The agency gave Bally's Chicago the green light to resume construction May 15 with a new vendor vetting and disclosure process in place. Bally's, which has been operating a temporary casino at Medinah Temple since September 2023, was ranked fifth among the state's 16 full casinos with $11 million in adjusted gross receipts last month, according to data from the Gaming Board. Hollywood Casino Aurora ranked eighth in revenue during April at $8.3 million and Hollywood Casino Joliet was 10th at $7.1 million, according to Gaming Board data. rchannick@
Yahoo
28-05-2025
- Business
- Yahoo
PENN Entertainment Sets August 11 as Grand Opening Date for New Hollywood Casino Joliet in Illinois
New land-based casino will be the featured attraction of Rock Run Collection's super-regional destination in Chicagoland WYOMISSING, Pa., May 28, 2025--(BUSINESS WIRE)--PENN Entertainment, Inc. ("PENN" or the "Company") (Nasdaq: PENN) announced today that it expects to open the new land-based Hollywood Casino Joliet to the public on Monday, August 11, pending customary regulatory approvals. PENN's newest casino is scheduled to open nearly six months ahead of the Company's originally scheduled construction timeline. The new state-of-the-art destination entertainment facility will anchor Rock Run Collection, a new super-regional commercial and residential development, conveniently located adjacent to the Interstate 80 and Interstate 55 interchange that estimates to have 230,000 passing vehicles daily. The best-in-class property will feature approximately 1,000 slots and 43 live table games, including a baccarat room, a retail ESPN BET sportsbook, an approximately 10,000 square foot event center with meeting areas, and roughly 1,330 parking spaces. The Company expects to have approximately 600 team members at the new casino, growing PENN's employee roster in Joliet by 200. "The countdown to the opening of our newest casino begins today," said Jay Snowden, Chief Executive Officer and President for PENN. "The move from our existing riverboat significantly improves our offerings in the highly attractive Chicagoland market, and both our existing customers and new guests will be able to enjoy premier gaming, dining, and entertainment at this exceptionally accessible new location." Hollywood Casino Joliet will introduce numerous world class quality dining experiences for guests to enjoy. As previously announced, PENN has partnered with celebrity chef and entrepreneur Giada De Laurentiis to debut her fusion of classic Italian cuisine and modern California influence in the Chicagoland region for the first time. Sorellina by Giada will offer approximately 170 seats for dining and a contemporary bar featuring a comprehensive wine selection with a light, young, and casual aesthetic. PENN has also partnered with McClain Camarota Hospitality ("MCH") to bring prominent Chicago chefs and restaurants to Hollywood Casino Joliet. Through this partnership, the property will feature the Boulevard Food & Drink Hall, a dynamic dining experience that will include Lucky Goat, an all-new burger concept from celebrity chef Stephanie Izard; Antique Taco, the first suburban location for the popular gourmet taco restaurant; Pretty Cool Ice Cream, the Chicago favorite that also has store fronts in Logan Square and Lincoln Park; and Five50 Pizza, a New York-style meets Neapolitan pizza concept offering from the fine dining chefs at MCH. "We're thrilled to partner with these elite restauranteurs to bring amazing dining options to the new Hollywood Casino Joliet," said Todd George, Executive Vice President of Operations for PENN. "These concepts will create a vibrant atmosphere throughout the property and provide our patrons with an array of food and beverage offerings that are unmatched in the market." Additional details related to the grand opening of the new casino will be provided in advance of August 11. The Company expects to work with the Illinois Gaming Board on the transfer of operations from the existing Hollywood Casino Joliet, which is located on the Des Plaines River, to the new landside facility as the opening date nears. In the third quarter, PENN anticipates accessing approximately $130 million in funding from Gaming and Leisure Properties, Inc. for this $185 million project. About Hollywood Casino Joliet Opened in 1992 on the shores of the Des Plaines River, Hollywood Casino Joliet, operated by PENN Entertainment, features hundreds of the latest slot machines and table games along with electrifying entertainment and premier dining experiences. A new $185 million land-based Hollywood Casino Joliet is scheduled to open in the summer of 2025 featuring approximately 1,000 slots and 43 live table games, an ESPN BET sportsbook, several new restaurants and bars, event center and meeting space, and ample parking. For more information, visit About PENN Entertainment 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 Statement 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," "look forward to," or "anticipates" or the negative or other variations of these or similar words, or by discussions of future events, strategies or risks and uncertainties. These statements are based upon management's current expectations, assumptions and estimates and are not guarantees of timing, future results, or performance. Therefore, you should not rely on any of these forward-looking statements as predictions of future events. Actual results may differ materially from those contemplated in these statements due to a variety of risks, uncertainties and other factors, including those factors described in PENN Entertainment's filings with the Securities and Exchange Commission (the "SEC"), including PENN Entertainment's current reports on Form 8-K, quarterly reports on Form 10-Q and its annual report on Form 10-K for the year ended December 31, 2024. Forward-looking statements speak only as of the date they are made and, except for PENN Entertainment's ongoing obligations under the U.S. federal securities laws, PENN Entertainment undertakes no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise. View source version on Contacts Media Contact: Jeff MorrisVP, Public AffairsPENN Entertainment, 610/373-2400 Mike NievesSVP, Finance & TreasurerPENN Entertainment, 610/373-2400 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
08-05-2025
- Business
- Business Wire
PENN Entertainment, Inc. Reports First Quarter Results
WYOMISSING, Pa.--(BUSINESS WIRE)--PENN Entertainment, Inc. ('PENN' or the 'Company') (Nasdaq: PENN) today reported financial results for the quarter ended March 31, 2025. Jay Snowden, Chief Executive Officer and President, said: 'PENN's properties demonstrated strong resilience in the quarter following severe weather challenges earlier in the year, as gaming volumes rebounded in March and remained consistent through April and early May. In our Interactive segment we generated record gaming revenue and significant year-over-year improvements in both revenue and Adjusted EBITDA despite industry-wide unfavorable sports betting hold. Our corporate overhead costs were higher by approximately $8 million in the quarter due to legal and advisory expenses. Through May 7, 2025 we have repurchased $35 million of shares and remain committed to our previously stated goal to repurchase at least $350 million of shares this year. Resilient Core Business Trends Property level highlights1: Revenues of $1.4 billion; Adjusted EBITDAR of $457.0 million; and Adjusted EBITDAR margins of 33.1%. 'Portfolio-wide weather events in January and February negatively impacted Adjusted EBITDAR by at least $10 million,' said Mr. Snowden. 'Core business trends were otherwise stable, particularly in markets not impacted by the continued growth of new supply. Our industry leading customer loyalty program, PENN Play™, combined with our investments in hospitality and entertainment offerings, contributed to strong engagement with our VIP and mid-worth customer segments. We are also seeing the benefits of our differentiated omni-channel strategy, as those pre-existing customers in Pennsylvania and Michigan who have engaged with our standalone Hollywood iCasino app have increased their spend meaningfully across both retail and online channels. ____________________ 1 Property level consists of retail operating segments which are composed of our Northeast, South, West, and Midwest reportable segments. Record Online Gaming Revenue and Momentum Building Interactive segment highlights: Revenues of $290.1 million (including tax gross up of $128.2 million); and Adjusted EBITDA loss of $89.0 million. 'Our Interactive segment generated significant top and bottom-line year-over-year growth, highlighting the improved flow through we are seeing in the business. These results are despite customer-friendly sports betting outcomes that negatively impacted Adjusted EBITDA by approximately $10 million in the quarter. Importantly, ESPN BET and theScore BET continue to provide a strong top of funnel for our online casino platforms, which achieved record gaming revenue in the quarter and are contributing meaningfully to our results. Our online casino momentum is bolstered by the compelling early results of our standalone iCasino app in Pennsylvania and Michigan, which recently expanded into New Jersey and Ontario. Additionally, since the year began, we have rolled out several ESPN BET product enhancements and new features leveraging account linking, including adding ESPN favorites to the app homepage and creating a new rewards program. Throughout the year we plan to continue executing our strategy to provide a differentiated, personalized digital offering while also working to deliver on our performance goals,' concluded Mr. Snowden. Share Repurchase Authorization Update During the quarter ended March 31, 2025, the Company repurchased 1,413,882 shares of its common stock in open market transactions for $25.0 million at an average price of $17.67 per share under the December 2022 Authorization. Subsequent to the quarter ended March 31, 2025, the Company repurchased 640,352 shares of its common stock at an average price of $15.00 per share for an aggregate amount of $9.6 million. As of May 7, 2025, the remaining availability under our December 2022 Authorization was $714.6 million. Liquidity and Financial Position Total liquidity as of March 31, 2025 was $1.5 billion inclusive of $591.6 million in Cash and cash equivalents. Traditional net debt as of the end of the quarter was $2.1 billion. Summary of First Quarter Results For the quarter ended March 31, (in millions, except per share data, unaudited) 2025 2024 Revenues $ 1,672.5 $ 1,606.9 Net income (loss) $ 111.5 $ (114.9 ) Adjusted EBITDA (1) $ 173.3 $ 101.4 Rent expense associated with triple net operating leases (2) 155.9 154.8 Adjusted EBITDAR (1) $ 329.2 $ 256.2 Cash payments to our REIT Landlords under Triple Net Leases (3) $ 240.0 $ 235.8 Diluted earnings (loss) per common share $ 0.68 $ (0.76 ) Expand (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.' Expand 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 quarter ended March 31, 2025 2024 Diluted earnings (loss) per share $ 0.68 $ (0.76 ) Transaction related expenses — 0.01 Legal matters inclusive of litigation settlements 0.05 (0.06 ) Non-operating items: Loss related to debt and equity investments — 0.01 Gain on financing arrangement (1.29 ) — Income tax impact on net income (loss) adjustments (1) 0.31 0.01 Adjusted EPS $ (0.25 ) $ (0.79 ) Expand (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. Expand 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 March 31, (in millions, unaudited) 2025 2024 Revenues: Northeast segment (1) $ 680.9 $ 684.7 South segment (2) 288.3 298.5 West segment (3) 129.7 128.8 Midwest segment (4) 282.9 291.2 Interactive (5) 290.1 207.7 Other (6) 5.3 6.0 Intersegment eliminations (7) (4.7 ) (10.0 ) Total revenues $ 1,672.5 $ 1,606.9 Adjusted EBITDAR: Northeast segment (1) $ 194.2 $ 202.6 South segment (2) 103.3 113.5 West segment (3) 45.7 45.9 Midwest segment (4) 113.8 117.0 Interactive (5) (89.0 ) (196.0 ) Other (6) (38.8 ) (26.8 ) Total Adjusted EBITDAR (8) $ 329.2 $ 256.2 Expand (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, and media. Interactive revenues are inclusive of a tax gross-up of $128.2 million and $116.6 million for the quarters ended March 31, 2025 and 2024, 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 $36.0 million and $24.9 million for the quarters ended March 31, 2025 and 2024, respectively, and include $7.7 million of legal and advisory costs related to our response to a purported proxy campaign in connection with our 2025 annual meeting of shareholders in the current year quarter. (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. Expand PENN ENTERTAINMENT, INC. AND SUBSIDIARIES Reconciliation of Comparable GAAP Financial Measure to Adjusted EBITDA, Adjusted EBITDAR, and Adjusted EBITDAR Margin For the quarter ended March 31, (in millions, unaudited) 2025 2024 Net income (loss) $ 111.5 $ (114.9 ) Income tax (benefit) expense 47.7 (12.6 ) Interest expense, net 110.8 119.1 Interest income (3.2 ) (7.1 ) Income from unconsolidated affiliates (7.6 ) (7.2 ) Gain on financing arrangement (215.1 ) — Other (income) expenses (1.3 ) 1.3 Operating income (loss) 42.8 (21.4 ) Stock-based compensation 15.6 11.9 Cash-settled stock-based awards variance (1) (3.2 ) (8.0 ) Loss (gain) on disposal of assets 0.2 (0.2 ) Pre-opening expenses 0.5 — Depreciation and amortization 108.0 108.7 Income from unconsolidated affiliates 7.6 7.2 Non-operating items of equity method investments (2) 1.1 1.1 Other expenses (3) 0.7 2.1 Adjusted EBITDA 173.3 101.4 Rent expense associated with triple net operating leases 155.9 154.8 Adjusted EBITDAR $ 329.2 $ 256.2 Net income (loss) margin 6.7 % (7.2 )% Adjusted EBITDAR margin 19.7 % 15.9 % Expand (1) 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. (2) For the quarters ended March 31, 2025 and 2024, the respective amounts consist principally of depreciation expense associated with our Kansas Entertainment, LLC joint venture. (3) Consists of non-recurring transaction costs and prior to August 1, 2024 finance transformation costs associated with the implementation of our new Enterprise Resource Management system. Expand PENN ENTERTAINMENT, INC. AND SUBSIDIARIES Consolidated Statements of Operations For the quarter ended March 31, (in millions, except per share data, unaudited) 2025 2024 Revenues Gaming $ 1,298.3 $ 1,258.3 Food, beverage, hotel, and other 374.2 348.6 Total revenues 1,672.5 1,606.9 Operating expenses Gaming 853.8 879.5 Food, beverage, hotel, and other 264.9 251.2 General and administrative 403.0 388.9 Depreciation and amortization 108.0 108.7 Total operating expenses 1,629.7 1,628.3 Operating income (loss) 42.8 (21.4 ) Other income (expenses) Interest expense, net (110.8 ) (119.1 ) Interest income 3.2 7.1 Income from unconsolidated affiliates 7.6 7.2 Gain on financing arrangement 215.1 — Other 1.3 (1.3 ) Total other income (expenses) 116.4 (106.1 ) Income (loss) before income taxes 159.2 (127.5 ) Income tax benefit (expense) (47.7 ) 12.6 Net income (loss) 111.5 (114.9 ) Less: Net loss attributable to non-controlling interest 0.3 0.2 Net income (loss) attributable to PENN Entertainment, Inc. $ 111.8 $ (114.7 ) Earnings (loss) per share: Basic earnings (loss) per share $ 0.73 $ (0.76 ) Diluted earnings (loss) per share $ 0.68 $ (0.76 ) Weighted-average common shares outstanding—basic 152.3 151.9 Weighted-average common shares outstanding—diluted 167.0 151.9 Expand Selected Financial Information and GAAP to Non-GAAP Reconciliations (in millions, unaudited) March 31, 2025 December 31, 2024 Cash and cash equivalents $ 591.6 $ 706.6 Total traditional debt $ 2,646.0 $ 2,596.1 Less: Cash and cash equivalents (591.6 ) (706.6 ) Traditional net debt (1) $ 2,054.4 $ 1,889.5 Amended Revolving Credit Facility due 2027 $ 60.0 $ — Amended Term Loan A Facility due 2027 474.4 481.3 Amended Term Loan B Facility due 2029 972.5 975.0 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 8.6 9.3 Total traditional debt 2,646.0 2,596.1 Financing obligation (2) — 201.2 Less: Debt discounts and debt issuance costs (24.3 ) (26.6 ) $ 2,621.7 $ 2,770.7 Total traditional debt $ 2,646.0 $ 2,596.1 Less: Cash and cash equivalents (591.6 ) (706.6 ) Plus: Cash rent payments to REIT landlords for the trailing twelve months (3) 7,636.8 7,603.2 $ 9,691.2 $ 9,492.7 Adjusted EBITDAR for the trailing twelve months $ 1,365.3 $ 1,292.3 Lease-adjusted net leverage ratio (1) 7.1x 7.3x Traditional net leverage (1) 5.0x 5.5x Expand (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. Expand Cash Flow Data The table below summarizes certain cash expenditures incurred by the Company. For the quarter ended March 31, (in millions, unaudited) 2025 2024 Cash payments to our REIT Landlords under Triple Net Leases $ 240.0 $ 235.8 Cash payments (refunds) related to income taxes, net $ (19.7 ) $ 0.6 Cash paid for interest on traditional debt $ 36.7 $ 49.1 Capital expenditures $ 125.2 $ 41.4 Expand 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, 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, and depreciation and amortization) added back for 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; 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. The conference call number is 203-518-9765 (conference ID: PENN); 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 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 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, (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 over 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 share repurchases; 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, changes in interest rates, economic downturns, changes in trade policies, 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; adverse outcomes of litigation involving the Company, including litigation in connection with our 2025 annual meeting of 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, 2024, 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.
Yahoo
01-04-2025
- Business
- Yahoo
Q4 Earnings Roundup: PENN Entertainment (NASDAQ:PENN) And The Rest Of The Casino Operator Segment
Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let's have a look at PENN Entertainment (NASDAQ:PENN) and its peers. Casino operators enjoy limited competition because gambling is a highly regulated industry. These companies can also enjoy healthy margins and profits. Have you ever heard the phrase 'the house always wins'? Regulation cuts both ways, however, and casinos may face stroke-of-the-pen risk that suddenly limits what they can or can't do and where they can do it. Furthermore, digitization is changing the game, pun intended. Whether it's online poker or sports betting on your smartphone, innovation is forcing these players to adapt to changing consumer preferences, such as being able to wager anywhere on demand. The 9 casino operator stocks we track reported a mixed Q4. As a group, revenues beat analysts' consensus estimates by 0.9%. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 12.6% since the latest earnings results. Established in 1982, PENN Entertainment (NASDAQ:PENN) is a diversified American operator of casinos, sports betting, and entertainment venues. PENN Entertainment reported revenues of $1.67 billion, up 19.6% year on year. This print was in line with analysts' expectations, but overall, it was a softer quarter for the company with a significant miss of analysts' EBITDA and EPS estimates. 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. PENN Entertainment achieved the fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 8.9% since reporting and currently trades at $16.16. Read our full report on PENN Entertainment here, it's free. Established in 1993, Monarch (NASDAQ:MCRI) operates luxury casinos and resorts, offering high-end gaming, dining, and hospitality experiences. Monarch reported revenues of $134.5 million, up 4.9% year on year, outperforming analysts' expectations by 4.4%. The business had a very strong quarter with a solid beat of analysts' EPS estimates and an impressive beat of analysts' adjusted operating income estimates. Monarch pulled off the biggest analyst estimates beat among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 8.9% since reporting. It currently trades at $78.09. Is now the time to buy Monarch? Access our full analysis of the earnings results here, it's free. Headquartered in Providence, Rhode Island, Bally's Corporation (NYSE:BALY) is a diversified global casino-entertainment company that owns and manages casinos, resorts, and online gaming platforms. Bally's reported revenues of $580.4 million, down 5.1% year on year, falling short of analysts' expectations by 1.9%. It was a disappointing quarter as it posted a significant miss of analysts' adjusted operating income and EPS estimates. The stock is flat since the results and currently trades at $13. Read our full analysis of Bally's results here. Formerly Eldorado Resorts, Caesars Entertainment (NASDAQ:CZR) is a global gaming and hospitality company operating numerous casinos, hotels, and resort properties. Caesars Entertainment reported revenues of $2.80 billion, flat year on year. This result lagged analysts' expectations by 1.1%. More broadly, it was actually a very strong quarter as it produced a solid beat of analysts' EPS estimates and an impressive beat of analysts' adjusted operating income estimates. The stock is down 28.3% since reporting and currently trades at $25. Read our full, actionable report on Caesars Entertainment here, it's free. Founded by the former Mirage Resorts CEO, Wynn Resorts (NASDAQ:WYNN) is a global developer and operator of high-end hotels and casinos, known for its luxurious properties and premium guest services. Wynn Resorts reported revenues of $1.84 billion, flat year on year. This print topped analysts' expectations by 2.8%. Overall, it was a strong quarter as it also produced an impressive beat of analysts' EPS estimates and a solid beat of analysts' adjusted operating income estimates. The stock is up 4.4% since reporting and currently trades at $84.02. Read our full, actionable report on Wynn Resorts here, it's free. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
