NASDAQ$PENN

Penn National Gaming Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported strong third quarter revenues and record Adjusted EBITDAR, driven by property performance and the successful launch of the Barstool Sportsbook app.

Penn National Gaming reported Q3 2020 revenues of $1.13 billion, net income of $141.2 million, Adjusted EBITDAR of $452.6 million, and Adjusted EBITDA of $343.6 million. The company saw strong performance across its properties and a highly successful launch of the Barstool Sportsbook app.

  • Generated revenues of $1.13 billion and Adjusted EBITDAR of $452.6 million.
  • Ohio and Indiana properties led the way for the Northeast segment, and each property in the South region, save L’Auberge Lake Charles, delivered double-digit Adjusted EBITDAR growth.
  • Launched the Barstool Sportsbook app in Pennsylvania, which broke records for the most downloads ever for the launch of a new mobile sportsbook.
  • The app generated total handle of $78 million across 30,000 first-time depositors in the first 37 days of operation.

Headline financials

Total Revenue

$1.13B

Previous: $1.35B-16.6%
EPS (adj)

$0.93

Previous: $0.38+144.7%
Consolidated Adjusted EBITDA

$453M

Previous: $408M+11.0%
Adjusted EBITDA Margin

40.1%

Previous: 30.1%+33.2%
Capital Expenditures

-$23.9M

Previous: -$41.7M+42.7%
Free Cash Flow

$118M

Previous: $2.2M+5263.6%
Net Income

$142M

Previous: $43.9M+223.2%
Operating Income

$196M

Previous: $180M+9.1%
Gross Profit

$1.13B

Previous: $1.35B-16.6%
Cash & Equivalents

$1.87B

Previous: $407M+360.3%
Total Assets

$14.8B

Previous: $14.3B+3.5%
Stock-Based Comp

$2.8M

Previous: $3.74M-25.1%

Revenue & EPS history

Penn National · Revenue · Quarterly

$1.13B

Q3 2020-16.6%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Penn National · $1.34B total across 5 segments · Q4 2019

  • Northeast
    $621M
  • Midwest
    $279M
  • South
    $268M
  • West
    $158M
  • Other
    $15.6M

Forward guidance

The company anticipates introducing Barstool-branded retail sportsbooks and launching the Barstool Sportsbook app in Michigan, subject to regulatory approval. They are also working on cashless technology and Barstool-branded entertainment destinations.

Tailwinds

  • Introducing Barstool-branded retail sportsbooks across the portfolio.
  • Potential launch of Barstool Sportsbook app in Michigan.
  • Introducing cashless technology to improve efficiency and customer service.
  • Developing new Category 4 casino development projects in Pennsylvania.
  • Actively advocating for the passage of sports betting in states where it is not yet approved.

Headwinds

  • Business decisions made in response to restrictions and evolving customer trends.
  • Restrictions in place and evolving customer visitation and volume trends.
  • Challenging year with difficult business decisions.
  • Potential delays in regulatory approvals for new ventures.
  • Uncertainties related to the ongoing COVID-19 pandemic and its impacts.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.1%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+3.4%

Avg return

30 days after

41%

28 / 69 earnings

Positive

+27.6%

Q2 2020

Best reaction

-17.3%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.0%-6.8%+4.4%
Q4 2025+17.0%+19.1%+9.8%
Q3 2025-10.5%-5.3%-15.5%
Q2 2025+1.0%+4.0%+10.2%
Q1 2025-2.8%+2.9%-0.8%
Q4 2024-0.1%-3.2%-17.1%
Q3 2024+6.6%+12.0%+7.9%
Q2 2024+5.7%+9.0%+4.7%
Q1 2024-8.0%-3.2%+6.4%
Q4 2023-17.3%-23.2%-21.6%
Q3 2023+15.9%+20.4%+30.5%
Q2 2023+1.2%+0.4%-10.8%
Q1 2023-12.2%-12.4%-12.3%
Q4 2022-4.2%-4.1%-13.1%
Q3 2022-0.4%+1.7%+6.7%
Q2 2022-6.7%-6.8%-14.5%
Q1 2022-11.4%-20.9%-15.0%
Q4 2021-1.5%+5.3%+1.5%
Q3 2021-15.1%-18.9%-34.0%
Q2 2021+8.5%+5.9%+23.3%
Q1 2021-5.2%-9.1%-11.9%
Q4 2020+18.2%+7.1%-0.8%
Q3 2020-4.6%-0.9%+29.5%
Q2 2020+27.6%+21.4%+41.1%
Q1 2020+16.9%+12.6%+128.7%
Q4 2019+6.4%+14.1%-25.9%
Q3 2019-1.8%+0.9%+5.4%
Q2 2019-3.0%-5.8%-1.8%
Q1 2019-4.9%-10.9%-10.4%
Q4 2018-3.1%-3.6%-11.9%
Q3 2018-4.4%-8.4%-8.9%
Q2 2018-8.5%-6.2%+1.1%
Q1 2018+14.1%+16.5%+31.2%
Q4 2017-6.4%-5.4%-7.5%
Q3 2017+0.5%+2.8%+8.4%
Q2 2017-5.5%-4.5%-1.6%
Q1 2017-2.5%-2.4%+5.1%
Q4 2016+3.7%+2.9%+7.9%
Q3 2016-1.1%-2.6%+5.9%
Q2 2016+5.1%+2.9%+0.8%
Q1 2016-2.3%
Q4 2015-0.4%
Q3 2015+3.9%
Q2 2015-1.9%
Q1 2015+3.1%
Q4 2014-1.9%
Q3 2014+4.3%
Q2 2014-3.6%
Q1 2014-12.6%
Q4 2013+8.0%
Q3 2013+3.6%
Q2 2013-8.2%
Q1 2013+3.6%
Q4 2012+5.0%
Q3 2012-0.9%
Q2 2012-2.4%
Q1 2012-0.5%
Q4 2011+1.6%
Q3 2011-2.9%
Q2 2011-5.6%
Q1 2010-0.5%
Q1 2011+2.0%
Q4 2008+4.5%
Q4 2010+4.5%
Q3 2010+1.4%
Q3 2009+1.4%
Q2 2010-0.9%
Q2 2009-0.9%
Q4 2009-0.9%

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