Penn National Gaming Reports Losses for 2014
Description:
Penn National Gaming reported 2014 fourth quarter losses of $250.4 million Jan. 29, when the casino and racetrack owner also reported losses of $233.2 million for the year.
Penn National attributed the losses to a $316.5 million non-cash impairment charge in the fourth quarter.
The company failed to reach guidance numbers that had called for a fourth quarter loss of $6.1 million and positive income of $11.1 million for the year. Penn National did improve on last year's numbers that saw the company lose $888.7 million in the final quarter of 2013 and $794.3 million overall.
In guidance numbers posted in the release, the company expects to finish in the black in 2015 with net income of $41.3 million.
In 2014 Penn National completed several ongoing development projects including the opening of the Thoroughbred track Mahoning Valley Race Course in Ohio. Other completed projects included the addition of a 154-room hotel at Zia Park and the opening of the Standardbred track Hollywood Gaming at Dayton Raceway.
In a statement, Penn National president Tim Wilmott said the Ohio racinos performed well.
"We are proud to have assembled outstanding corporate and operating management teams, achieved ongoing progress in delivering strong consolidated adjusted EBITDA margins and to have prudently managed our balance sheet while executing against our new property development pipeline, which includes the successful opening of two new facilities in Ohio and the commencement of construction on significant near- and longer-term growth opportunities in Massachusetts and California," Wilmott said.
The company expects those tracks to help it return to profitability in 2015.
"We expect our 2015 operating results to benefit from: our ongoing disciplined management of our existing properties; a full year of operations of Hollywood Gaming at Dayton Raceway and Hollywood Gaming at Mahoning Valley Race Course; continued growth and efficiencies being achieved at other recently opened and acquired properties; and, the planned mid-year opening of Plainridge Park Casino, located 20 miles southwest of the Boston beltway, just off interstate 95 in Plainville, Mass.," Wilmott said.