Penn National Gaming reports record first quarter results.WYOMISSING, Penn.--(BUSINESS WIRE)--April 28, 1997-- operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. rises 80.2%; net income before extraordinary item increases 35.9% submits application for off-track wagering wa·ger n. 1. a. An agreement under which each bettor pledges a certain amount to the other depending on the outcome of an unsettled matter. b. A matter bet on; a gamble. 2. facility in Carbondale, Pennsylvania Carbondale is a city in Lackawanna County, Pennsylvania, United States. Carbondale is located approximately 15 miles due NE of the city of Scranton in Northeastern Pennsylvania. The population was 9,804 at the 2000 census. new 12,000 square foot facility is Penn National's ninth announced site Penn National Gaming Penn National Gaming, Inc. NASDAQ: PENN is a diversified owner and operator of casino properties, as well as horse racetracks and associated off-track betting facilities primarily in the United States. , Inc. (PENN:Nasdaq) today reported record first quarter results for the period ended March 31, 1997. The Company also announced that it has submitted an application to the Pennsylvania State Harness Racing harness racing: see horse racing. harness racing Horse-racing sport. In harness racing, Standardbred horses are harnessed to lightweight, two-wheeled, bodiless (seat-only) vehicles known as sulkies. The sport's origins date to ancient chariot races. Commission for a new off-track wagering (OTW OTW Otherwise OTW Off The Wall OTW On the Way OTW On the Whole OTW Of The World (online TV network) OTW On The Web OTW Out the Window (display/graphics) OTW On The Water ) facility in Carbondale, Pennsylvania. If approved by the Racing Commission, the Company expects to have the facility constructed and operational in the fourth quarter of 1997. The Carbondale OTW marks Penn National's ninth announced OTW facility. Penn National currently operates the Penn National Race Course
Revenues for the quarter rose 56.7% to $22,820,000 compared with $14,560,000 during the first quarter of fiscal 1996. Net income before extraordinary item rose 35.9% to $1,684,000 compared to $1,239,000 during the same period last year. Net income per share before extraordinary item increased 22.2% to $0.11 from $0.09 in the first quarter of 1996. Per share results are based on a weighted average number of shares outstanding of 14,912,000 and 13,302,000 for the first quarters of 1997 and 1996, respectively, and have been adjusted to reflect the May 1996 3-for-2 stock split, the December 1996 2-for-1 stock split, and the Company's February 1997 1,725,000 share offering. Commenting on the results, Peter M. Carlino, Chief Executive Officer of Penn National said, "Penn National's long-term strategy to achieve financial growth by leveraging its pari-mutuel operating skills through the expansion of our racing and OTW franchises resulted in an 80% increase in operating income and a 36% rise in first quarter net income before extraordinary item. Contributions from the Pocono operations, continued attendance and wagering growth at our OTW's and our ongoing efforts to optimize the mix of simulcasting, live racing and export simulcasting drove our first quarter gross wagering up 52.6% to $135,357,267. "During the quarter, we were very active in further developing Penn National for future growth. We increased our equity stake in our Charles Town venture, raised approximately $23.6 million in equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. , and opened our newest OTW facility in Willamsport, which is off to a solid start. We also continued to emphasize operating efficiencies, promotion and service at our other OTW facilities to ensure their ongoing success and contribution to profitability. "Future periods should benefit from Pocono Downs' re-opening for live racing on April 5 and the Charles Town Races opening on April 30. During the quarter, West Virginia's Sunset Provision A statutory provision providing that a particular agency, benefit, or law will expire on a particular date, unless it is reauthorized by the legislature. Federal and state governments grew dramatically in the 1950s and 1960s. for the Gaming Machine See video game console. Act was terminated, and we are on schedule to install the initial video gaming video gaming n. 1. Gambling by means of interactive games of chance played on a video screen. 2. The playing of video games. machines at the track by mid-summer." Penn National's proposed ninth OTW at 15 Fleetwood Road in Carbondale, a 12,000 square foot site, is located just off Route 6, the main artery through Carbondale in Lackawanna County, Pennsylvania Lackawanna County is a county in the U.S. state of Pennsylvania. It lies at the northern edge of the Coal Region, northwest of the Poconos. The 2000 population was 213,295. . Mr. Carlino, added, "Our proposed Carbondale facility, like all of Penn National's OTW's, will emphasize the entertainment elements of the pari-mutuel and OTW experience. Our successful OTW format stresses attractive facilities, affordable, quality dining and entertainment, advanced wagering equipment and terrific racing from Pennsylvania and around the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Each OTW has been successful in adding incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. earnings to Penn National and we will fund this $2.0 million facility from our current cash position. "The communities where we operate our other seven OTWs realize that we not only provide high quality entertainment but also generate regional economic benefits. We expect to hire approximately sixty employees from the local community to staff the Carbondale facility." Like Penn National's seven existing OTWs, Carbondale will be a total entertainment facility featuring a large screen theater area, an upscale restaurant and bar, and a lounge area with another full- service restaurant and approximately 250 television monitors which will simulcast races from leading horse racing facilities nationwide. The proposed Carbondale off-track wagering facility will feature state-of-the-art technology for both wagering and viewing simulcast racing events. Wagering equipment to be supplied by Autotote Corporation will allow patrons to deposit money into their accounts and wager by telephone or at Penn National's OTWs or tracks. Interactive wagering units with private 9" television monitors will enable customers to wager directly from their seats. Penn National Gaming owns, operates and conducts wagering at its Penn National Race Course, one of two thoroughbred Thoroughbred Light breed of racing and jumping horse descended from three desert stallions brought to England between 1689 and 1724. Thoroughbreds have a delicate head, slim body, broad chest, and short back. Most are bay, chestnut, brown, black, or gray. racetracks in Pennsylvania, at Pocono Downs Racetrack, one of two harness racetracks in Pennsylvania, and at its seven OTW facilities in Allentown, Erie, Reading, Chambersburg, York, Williamsport and Lancaster, Pennsylvania Lancaster, is a city in the South Central part of the Commonwealth of Pennsylvania and is the county seat of Lancaster County. With a population of 55,351,[1] it is the 8th largest city in Pennsylvania, behind Philadelphia, Pittsburgh, Allentown, Erie, Reading, . The Company has filed applications for its eighth and ninth OTW sites near Downingtown, and Carbondale, PA, respectively. The Company also conducts wagering on thoroughbred and harness races simulcast from other racetracks and simulcasts its races for wagering at other racetracks and wagering facilities across the country. Through its joint venture with Bryant Development Company, Penn National in January 1997 purchased the Charles Town race track, a live thoroughbred racing facility in Jefferson County Jefferson County is the name of 25 counties and one parish in the United States. The following are named for Thomas Jefferson, third President of the United States:
Area, 24,181 sq mi (62,629 sq km). Pop. . Penn National is installing video gaming machines at this historic facility and is renovating the clubhouse and grandstand, creating a video gaming machine lounge, and building new barns and two new restaurant facilities. The Company expects the facility to be open for racing April 30, and gaming in mid-summer. Except for the historical information in this press release, this press release includes forward- looking statements that involve risks and uncertainties, including, but not limited to, quarterly fluctuations in results, the management of growth, weather, regulatory changes, and other risks detailed from time to time in the Company's Securities and Exchange Commission filings. Actual results may differ materially from such information set forth herein. -0-
PENN NATIONAL GAMING, INC. AND SUBSIDIARIES
Summary Consolidated Statement Of Income
(In thousands, except per share data)
Three Months Ended
March 31,
(Unaudited)
1997 1996
Total revenues $22,820 $14,560
Total operating expenses 19,144 12,521
Income from operations 3,676 2,039
Total other income (expenses) (814) 54
Income (loss) before income taxes 2,862 2,093
Taxes on income (benefit) 1,178 854
Net Income before extraordinary item $1,684 $1,239
Extraordinary item - Loss on early
extinguishment of debt, net of taxes
of $260 383 -
Net Income $1,301 $1,239
Net Income per share before
extraordinary item $0.11 $0.09
Net income per share $0.09 $0.09
Weighted average number of common
shares outstanding(a) 14,912 13,302
(a) The weighted average number of shares outstanding for the first quarters of 1997 and 1996, respectively, have been adjusted to reflect the May 1996 3-for-2 stock split, the December 1996 2-for-1 stock split, and the Company's February 1997 offering of 1,725,000 shares of Common Stock. CONTACT: Robert Ippolito Chief Financial Officer 610/373-2400 or Joseph N. Jaffoni Jaffoni & Collins Incorporated 212/505-3015 orjciir@aol.com |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion