Penn National reports third-quarter results

Staff report

AUSTINTOWN

Hollywood Gaming at Mahoning Valley Race Course’s parent company reported strong third-quarter results Thursday.

Net income was $46.5 million compared with $4.9 million made in the third quarter of 2015. The company forecasted net income of $26.3 million.

Revenue was $765.6 million, compared with $739.3 million made in the third quarter of 2015. The company had expected to bring in revenue of $767.3 million this quarter.

With 27 gaming facilities in 17 states, Penn National had adjusted earnings of $211.3 million, which was slightly below the company’s forecast of $212.3 million. Adjusted earnings during the third quarter of 2015 were $210.3 million.

“In the third quarter, consistent with other businesses dependent on consumer discretionary spending, the regional gaming industry continued to experience uneven performance as a result of what we believe to be a combination of macroeconomic factors and an uncertain political landscape,” said Timothy J. Wilmott, president and chief executive officer of Penn National, in a statement.

The company’s northeast segment, which includes the local racino, reported revenue of $395,748 compared with revenue of $406,552 reported in the third quarter of 2015. Adjusted earnings in the segment were $124,421 compared with $124,880 reported in the same quarter a year ago.

Other segments all saw increases in revenue.

“With continued progress throughout 2016 in generating strong free cash flow while actively and conservatively managing our capital structure to de-lever and provide the financial flexibility to support our near- and long-term growth initiatives, we believe Penn National is well positioned to benefit from improvements in consumer spending and to take advantage of opportunities for new growth opportunities,” Wilmott said.