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Austintown racino proceeds to do well
By Kalea Hall
AUSTINTOWN
Hollywood Gaming at Mahoning Valley Race Course in Austintown and the three other Penn National Gaming Inc. properties in Ohio are all seeing momentum, the company’s chief operating officer said Thursday.
“We continue to exceed [our] projections at those properties,” said Jay Snowden, COO of Penn National.
On Thursday, the company reported first-quarter 2015 earnings of $664.1 million compared with $641.1 million in the first quarter 2014.
The net revenue for the first quarter, however, fell short of the company’s first-quarter goal of $670.6 million.
Penn National said its adjusted earnings before interest, tax, depreciation and amortization (EBITDA) came in at $75.4 million. This is compared with $73.4 in the first quarter 2014 and the company’s projected first quarter 2015 goal of $74.6 million.
Earnings per share went from $0.05 in the first quarter 2014 to $0.12 in the first quarter of 2015.
“It was a relatively uneventful quarter,” Snowden said during a conference call Thursday. “It was a tale of two halves.”
The second half of the first quarter took a hit from the frigid temperatures. At the same time, consumer confidence impacted visitation to the company’s properties.
“April results, with the weather behind us, have been very encouraging throughout the company,” Snowden said.
Penn National President and Chief Executive Officer Timothy J. Wilmott said the first quarter results were in line with what was expected.
Upon final approval from the Massachusetts Gaming Commission, Penn National intends to open Plainridge Park Casino in Massachusetts on June 24. The facility will include live harness racing, simulcasting, 1,250 gaming devices and various dining options.
The new facility will be included in the company’s east/midwest segment, which also includes the Austintown racino. The other Penn National properties in Columbus, Dayton and Toledo, as well as Bangor, Maine, Penn National Race Course in Grantville, Pa., Hollywood Casino at Charles Town Races and Hollywood Casino Lawrenceburg, Ind. are also in the east/midwest segment.
This segment’s first quarter 2015 revenue came in at $386,544, adjusted EBITDA, or earnings before interest, taxes, depreciation, amortization, and rent costs, was reported at $116,477.
In total, the east/midwest, west, southern plains and other Penn National segments reported net revenue of $664,138 and adjusted EBITDA of $184,215.
“We continue to have relatively good visibility for 2015 operating results based on the disciplined management of our existing properties, a more-stable operating environment, a full year of operations of Hollywood Gaming at Dayton Raceway and Hollywood Gaming at Mahoning Valley Race Course, continued growth and efficiencies at our other recently opened or acquired properties, and a half year of operating results from Plainridge Park Casino,” Wilmott said.
In addition to Penn National’s Massachusetts plans, the company’s Jamul Indian Village project in California is under construction with an expected opening date of mid-2016.
Penn National expects second-quarter earnings, which run through June 30, to come in at $672.7 million. For the year the company projects net revenue of $2.7 billion.