Revenue Down, Income Up for PNGI

The company released its second-quarter financial report July 24.

Despite a 14.3% decrease in net revenue, Penn National Gaming Inc. July 24 reported net income of $2.8 million for the second quarter of this year versus a $12.2 million loss for the same three months of 2013.

The reversal in income wasn't unexpected given impairment charges and separation of the company's real estate holdings into a separate entity last year.

PNGI president and chief executive officer Tim Wilmott said that excluding operations of a casino in Iowa, second-quarter adjusted earnings before interest, taxes, depreciation, and amortization exceeded guidance by about $2.2 million. He said the financial results "reflect our continued success in efficiently operating our broadly diversified portfolio of new and well-maintained regional gaming facilities."

Projects in the works include construction of a hotel at Zia Park Casino in New Mexico ($26 million), completion of construction of Hollywood Gaming at Dayton Raceway in Ohio ($165 million) and Hollywood Gaming at Mahoning Valley Race Course in Ohio ($161 million), construction of a slot-machine parlor at Plainridge Park Casino in Massachusetts ($225 million), and construction of an Indian casino in Southern California ($360 million).

Through June 30, PNGI reported $1.05 million in total debt and $251.2 million in cash and cash equivalents.