Penn National Gaming, Inc. PENN reported fourth-quarter 2019 results, with earnings and revenues missing the respective Zacks Consensus Estimate. Notably, the top line missed the consensus mark in three of the trailing four quarters.
Adjusted loss came in at 80 cents per share, lagging the Zacks Consensus Estimate of earnings per share (EPS) of 37 cents. In the prior-year quarter, the company had reported adjusted loss of 37 cents. Net revenues totaled $1,341.2 million, which missed the consensus mark of $1,347 million. Nevertheless, the figure surged 16.1% from the year-ago quarter’s number.
The Northeast segment reported revenues of $621.3 million, up 18.1% year over year. The West, Midwest and South segments’ revenues came in at $158.1 million, $279.2 million and $268.2 million, up 7.8%, 5.5% and 28.9%, respectively, year over year. Meanwhile, the Other segment reported revenues of $15.6 million, up 57.5% year over year.
Let us take a closer look at the numbers
Inside the Headlines
Penn National’s income from operations declined to $11.3 million in the fourth quarter compared with $124.4 million in the prior-year quarter. Adjusted EBITDAR increased 23.3% from the year-ago quarter’s figure to $399.4 million. Moreover, adjusted EBITDAR margin expanded 180 basis points to 29.8%.
Meanwhile, the traditional net debt ratio was 2.4x, and net leverage on a lease-adjusted basis was 5.5x.
Other Financial Information
At the end of the fourth quarter, cash and cash equivalents declined to $437.4 million compared with $479.6 million at the end of Dec 31, 2018. Further, the bank debt as of Dec 31, 2019, were $1,896.5 million, down from $1,907.9 million at the end of Dec 31, 2018.
Penn National Gaming, Inc. Price, Consensus and EPS Surprise