Penn National Income Falls Short of Guidance

Chairman Peter Carlino notes soft regional gaming revenue in third quarter decline.

Penn National Gaming saw its third quarter income fall 6.3% short of guidance at $41.3 million, an 11% decline compared with the third quarter of 2012.

Chairman Peter Carlino said decreased regional interest in the company's casinos and racetracks impacted that income.

"Third quarter operating results reflect a continuation of the soft regional gaming revenue trends that the industry has experienced throughout 2013," Carlino said. "As a result, third quarter revenues were in line with guidance and adjusted property operating results were approximately $1.8 million less than contemplated in our guidance."

Timothy Wilmott, who is currently Penn National's chief operating officer and who will soon serve as the company's chief executive officer, provided an update on some of the company's current projects.

"First, we remain on schedule and on budget with the re-branding and facility upgrade of Hollywood Casino St. Louis, which will be completed in December 2013. 

"We have been found suitable by the Maryland Lottery Commission and will make a presentation to the state's Video Lottery Facility Location Commission on Oct. 21 on our proposed $700 million Hollywood Casino at Rosecroft Raceway in Prince George's County, Maryland. In addition, we continue to make meaningful progress with the National Indian Gaming Commission, as well as state and local officials, on the proposed Hollywood Casino-branded casino on the Jamul Indian Village's land in trust, approximately 20 miles east of downtown San Diego. 

"Construction on our Dayton and Austintown (both in Ohio) integrated racing and gaming facilities continues on time and on budget and we expect both facilities to open in the second half of 2014. 

"In addition, the construction of a 154-room hotel at Zia Park Casino is on schedule and is expected to open in the second half of 2014. In Pennsylvania, we have proposals being considered by the Pennsylvania Gaming Control Board for a new gaming and entertainment destination in Philadelphia (where we are one of six applicants) as well as for the development of an integrated racing and gaming facility in Mahoning Township, near Pittsburgh (the last of the Category 1 sites in Pennsylvania), with decisions on both proposals expected in early 2014. 

"Finally, in Massachusetts, along with two other bidders, we recently submitted a formal application to the Massachusetts Gaming Commission for the state's sole Category 2 gaming license, with plans to develop a $225 million integrated racing VLT facility, Plainridge Park Casino, in the Greater Boston area."