EX-99.1 3 a04-4767_1ex99d1.htm EX-99.1

Exhibit 99.1

 

News Announcement

 

Conference Call:

 

Today, April 21 at 10:00 a.m. EDT

Dial-in numbers:

 

212/346-6383 or 415/904-7333

Webcast:

 

www.fulldisclosure.com

 

 

 

Replay information provided below

 

CONTACT:

 

 

William J. Clifford

 

Joseph N. Jaffoni

Chief Financial Officer

 

Jaffoni & Collins Incorporated

610/373-2400

 

212/835-8500 or penn@jcir.com

 

FOR IMMEDIATE RELEASE

 

PENN NATIONAL GAMING REPORTS RECORD

FIRST QUARTER REVENUE AND NET INCOME

 

- Diluted Net Income Per Share Rises to $0.43 vs. Guidance of $0.33 -

 

- Diluted Net Income Per Share Without Hollywood Casino – Shreveport

Rises to $0.52 vs. Guidance of $0.40-

 

- Income from Operations Rises to $54.3 Million vs. Guidance of $47.5 Million -

 

- Raises 2004 Full Year EPS Guidance to $1.56 from $1.46 -

 

- Raises 2004 Full Year EPS Guidance Without Hollywood Casino – Shreveport

to $1.90 from $1.75 -

 

Wyomissing, Penn., (April 21, 2004) – Penn National Gaming, Inc. (PENN: Nasdaq) today reported record first quarter results for the period ended March 31, 2004.

Summary of Q1 Results
(In millions, except per-share data)

 

 

 

Three Months Ended March 31,

 

 

 

2004

 

2003

 

2004 excluding
Hollywood Casino -
Shreveport +

 

2003 excluding
Hollywood Casino -
Shreveport +

 

Net revenues

 

$

330.8

 

$

225.2

 

$

293.9

 

$

212.5

 

EBITDA *

 

$

74.7

 

$

53.0

 

$

70.9

 

$

50.3

 

Income from operations

 

$

54.3

 

$

38.8

 

$

52.9

 

$

36.8

 

Net income #

 

$

17.8

 

$

13.2

 

$

21.4

 

$

13.7

 

Diluted EPS #

 

$

0.43

 

$

0.33

 

$

0.52

 

$

0.34

 

 

*                 EBITDA is income from operations excluding charges for depreciation and amortization and gain/loss on disposal of assets, and is inclusive of earnings from joint venture.  A reconciliation of income from operations (GAAP) to EBITDA, is provided later in this release.

#                 Net income and diluted EPS are presented in accordance with GAAP and include the Company’s Hollywood Casino - Shreveport operations.  Excluding pre-tax charges of $0.5 million, and $1.3 million or $0.01 per share and $0.02 per share after tax, for loss on fair value of interest rate swaps and loss on early extinguishment of debt, respectively, adjusted earnings per share for the first quarter of 2003 was $0.36.

 

 

1

 

+                 A reconciliation of net revenues, income from operations, net income and diluted earnings per share (GAAP) as well as EBITDA to net revenues, income from operations, net income, diluted earnings per share and EBITDA excluding Hollywood Casino - Shreveport, is provided later in this release.

 

Commenting on the results, Peter M. Carlino, Chief Executive Officer of Penn National said, “Our record first quarter was well ahead of the guidance which we provided in early February.  The greater than anticipated results reflect strong financial performances at all of our gaming properties.

 

“The 2004 first quarter represents the fifth consecutive period of ‘same store’ year-over-year EBITDA gains at each casino property we have operated for more than a year — namely Charles Town, Casino Rouge, Casino Magic - Bay St. Louis, Boomtown Biloxi, Bullwhackers and our Casino Rama management contract.  These six properties generated an impressive 20% increase in first quarter ‘same store’ EBITDA when compared to their 2003 results.  Our 41% increase in consolidated EBITDA reflects these ‘same store’ gains as well as the inclusion of a full three months of operations of the Hollywood Casino® assets in 2004 versus just one month in the first quarter of 2003.  Our Hollywood Casino properties performed well in the first quarter 2004 and contributed over $28 million in EBITDA or about 37% of our consolidated EBITDA.  Reflecting Penn National’s continued strong operating trends, during the first quarter we pre-paid approximately $20.0 million of principal on our senior credit facility.

 

“We recently reported that The West Virginia Lottery Commission authorized a 1,000 machine increase in the number of slot devices at Charles Town Races which, if fully effected, would bring to 4,500 the number of slots at this location.  We plan to add 300 of the newly authorized slot machines at Charles Town Races by the beginning of the fourth quarter of 2004, bringing the total slot machine installed base to 3,800 units.  Beyond that we are undertaking another expansion at Charles Town which will include 1,000 more covered parking spaces immediately adjacent to our facility and the capacity to house, at some point in the future, the additional 700 games recently authorized.  Increasing our slot offerings, while continuing our ongoing property enhancements and expansion will enable patrons to have better access to machines and an overall improved entertainment experience.

 

“During the first quarter, we were awarded a harness racing license in Maine for our recently purchased Bangor Historic Track, Inc. which operates harness racing at the city-owned track at Bass Park in Bangor, Maine.  Local voters have approved a referendum allowing slot machines at the Bangor facility, and at this time both houses of the legislature have passed supplemental legislation that provides for additional regulation and taxation.  The Joint Standing Committee on Appropriations and Financial Affairs is currently considering the fiscal impact of the legislation.

 

2

 

“We continue to pursue legislation permitting the placement of slot machines at our Pennsylvania racetracks which have been impacted by the availability of gaming in neighboring states.  In the first quarter, EBITDA derived from these assets declined by 18% compared to 2003.  Early this year the Governor proposed a new bill and has publicly requested a bill he can sign no later than June 30 of this year.  In addition to the support of the Governor, the House, and the Senate, repeated polling indicates that 70% of Pennsylvanian’s support slots in the state.  The most recently proposed model would enable us to reinvigorate our racing operations and we have the funding in place to act quickly if a new bill is passed.  We remain hopeful, but there is no certainty, that a slot bill will pass in Pennsylvania.

 

“While new opportunities and legislation are exciting elements in our growth, it is worth re-emphasizing that our first quarter gains reflect our long-term focus on operations, facility expansion and enhancement programs, marketing initiatives and our policy of appointing strong local management.  We continue to maintain a disciplined approach regarding each of the new opportunities and analyze their potential benefit to Penn National based on several criteria including return on investment, further revenue and earnings diversification and most importantly, the potential to enhance shareholder value.  Our increased 2004 guidance is based solely on our existing operating assets and does not assume any contributions from these new opportunities.”

 

Financial Guidance

The following table sets forth current guidance targets for the second quarter and full year 2004 in two forms.  One presentation includes all the Penn National and Hollywood Casino® properties, while the second presentation excludes Hollywood Casino – Shreveport (Hollywood Casino – Aurora, Hollywood Casino – Tunica and Hollywood Casino – Shreveport were acquired by Penn National Gaming on March 3, 2003 and accounted for as of March 1, 2003).

 

3

 

The guidance assumes the following:

•                  That Charles Town Races™ will complete its planned parking facility expansion  and will install an additional 300 gaming devices in the fourth quarter of 2004;

•                  Inclusion of operating results for racing operations at Bangor, Maine but that slot operations do not open in 2004;

•                  That there will be no financial contributions or material expenditures related to acquisition prospects;

•                  The Hollywood Casino Shreveport auction is not resolved in 2004 and the property continues to operate under the management of Penn National without seeking bankruptcy protection;

•                  That there will be no debt restructuring costs in 2004;

•                  That the effective tax rate for federal, state and local income taxes for 2004 will be 38%;

•                  That the Company will have approximately 41.5 million diluted shares outstanding; and,

•                  That there will be no material changes in economic conditions, legislative changes, or other extraordinary world events.

 

(in millions, except per
share data)

 

Q2 ‘04
With
Shreveport

 

Q2 ‘04
Without
Shreveport+

 

Q2 ‘03
Actual

 

Q2 ‘03
Without
Shreveport+

 

Total revenues

 

$

340.0

 

$

305.1

 

$

325.0

 

$

291.2

 

Income from operations

 

$

54.7

 

$

53.6

 

$

52.9

 

$

51.9

 

Plus depreciation and amortization, gain/loss on disposal of assets and earnings from joint venture

 

$

21.1

 

$

18.6

 

$

18.8

 

$

16.5

 

EBITDA*

 

$

75.8

 

$

72.2

 

$

71.7

 

$

68.4

 

Diluted EPS

 

$

0.44

 

$

0.53

 

$

0.38

 

$

0.47

 

 

4

 

(in millions, except per share
data)

 

Previous
Full Year
‘04 With
Shreveport

 

REVISED
Full Year
‘04 With
Shreveport

 

Full
Year
‘03
Actual

 

Previous
Full Year
‘04 Without
Shreveport+

 

REVISED
Full Year
‘04 Without
Shreveport+

 

Full Year
‘03 Without
Shreveport+

 

Total revenues

 

$

1,316.1

 

$

1,327.5

 

$

1,163.0

 

$

1,168.2

 

$

1,184.2

 

$

1,049.2

 

Income from operations

 

$

200.1

 

$

205.9

 

$

183.2

 

$

191.4

 

$

201.2

 

$

180.3

 

Plus depreciation and amortization, gain/loss on disposal of assets and earnings from joint venture

 

$

84.1

 

$

84.1

 

$

71.4

 

$

74.2

 

$

74.2

 

$

63.2

 

EBITDA*

 

$

284.2

 

$

290.0

 

$

254.6

 

$

265.6

 

$

275.4

 

$

243.5

 

Diluted EPS

 

$

1.46

 

$

1.56

 

$

1.27

 

$

1.75

 

$

1.90

 

$

1.58

 

Add back: After tax loss on change in fair value of interest rate swaps

 

—

 

—

 

$

0.03

 

—

 

—

 

$

0.03

 

Adjusted Diluted EPS#

 

$

1.46

 

$

1.56

 

$

1.30

 

$

1.75

 

$

1.90

 

$

1.61

 

 

*                 EBITDA is income from operations excluding charges for depreciation and amortization and gain/loss on disposal of assets, and is inclusive of earnings from joint venture.

 

#                 Adjusted Diluted EPS is Diluted EPS excluding the change in the fair value of interest rate swaps and the write-off of deferred finance fees and pre-payment fees associated with bank debt that was repaid with the proceeds of financings completed in the first quarter of 2003.

 

+                 As previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2003, Hollywood Casino Shreveport (HCS) and Shreveport Capital Corporation, the issuers of $150 million aggregate principal amount of 13% Senior Secured Notes due 2006 and $39 million aggregate principal amount of 13% First Mortgage Notes due 2006 (together, the “Notes”), failed to make an offer to purchase the Notes as required under the indentures governing the Notes.  In addition, HCS and Shreveport Capital Corporation failed to make the $12.3 million August 1, 2003 and $12.3 million February 1, 2004 interest payments due on the Notes.  As a result, the figures included in these columns exclude Hollywood Casino Shreveport.

 

5

 

PENN NATIONAL GAMING, INC. AND SUBSIDIARIES

Property Information

(In thousands) (unaudited)

 

 

 

REVENUES

 

EBITDA (1)

 

 

 

Three Months Ended March 31,

 

 

 

2004

 

2003

 

2004

 

2003

 

Charles Town Races™

 

$

94,052

 

$

70,483

 

$

24,887

 

$

19,059

 

Casino Rouge

 

28,455

 

29,070

 

9,245

 

9,045

 

Casino Magic – Bay St. Louis

 

28,601

 

26,665

 

6,573

 

6,209

 

Boomtown Biloxi – Biloxi

 

19,595

 

18,917

 

4,895

 

4,359

 

Bullwhackers

 

7,758

 

6,198

 

1,148

 

442

 

Casino Rama Management Contract

 

3,458

 

2,699

 

3,200

 

2,494

 

Pennsylvania Racing/OTWs

 

22,510

 

23,400

 

2,396

 

2,907

 

Hollywood Casino – Aurora (3)

 

58,869

 

24,791

 

17,238

 

7,434

 

Hollywood Casino – Tunica (3)

 

30,888

 

10,548

 

7,021

 

2,216

 

Earnings from Pennwood Racing, Inc. (New Jersey)

 

—

 

—

 

460

 

588

 

Corporate eliminations (2)

 

(316

)

(347

)

—

 

—

 

Corporate overhead

 

—

 

—

 

(6,181

)

(4,482

)

Sub-total without Hollywood Casino –
Shreveport (3)

 

$

293,870

 

$

212,424

 

$

70,882

 

$

50,271

 

 

 

 

 

 

 

 

 

 

 

Hollywood Casino – Shreveport (3)

 

36,901

 

12,710

 

3,816

 

2,779

 

Total

 

$

330,771

 

$

225,134

 

$

74,698

 

$

53,050

 

 

(1)          EBITDA is income from operations excluding charges for depreciation and amortization and gain/loss on disposal of assets, and is inclusive of earnings from joint venture.  EBITDA does not represent net income or cash flows from operations as those terms are defined by generally accepted accounting principles.  EBITDA does not necessarily indicate whether cash flows will be sufficient to fund cash needs. A reconciliation of GAAP income from operations to EBITDA is included in the financial schedules accompanying this release.

 

(2)          For intracompany transactions related to import/export simulcasting.

 

(3)          Hollywood Casino – Aurora, Hollywood Casino – Tunica and Hollywood Casino – Shreveport were acquired by Penn National Gaming on March 3, 2003 and accounted for as of March 1, 2003.  In the three months ended March 31, 2003, under former ownership for two months of the quarter, Hollywood Casino – Aurora revenues were $71.0 million and EBITDA was $20.3 million; Hollywood Casino – Tunica revenues were $27.8 million and EBITDA was $4.9 million; and Hollywood Casino – Shreveport revenues were $36.6 million and EBITDA was $6.0 million.  For the purposes of comparison, the 2003 revenue figures for Hollywood Casino – Aurora, Hollywood Casino – Tunica and Hollywood Casino – Shreveport under former ownership for two months of the quarter have been restated to conform with Penn National’s presentation.

 

-reconciliations follow-

 

6

 

Reconciliation of Diluted Earnings Per Share (GAAP) to Diluted Earnings Per Share
Without Hollywood Casino - Shreveport

 

Three months ended March 31, 2004
(in millions, except per share data)

 

Penn
National
Gaming
Consolidated
(as reported
GAAP)

 

Subtract
Hollywood
Casino -
Shreveport

 

Penn National
Gaming without
Hollywood
Casino -
Shreveport

 

Net revenues

 

$

330.8

 

$

36.9

 

$

293.9

 

Income from operations

 

$

54.3

 

$

1.4

 

$

52.9

 

Depreciation and amortization, gain/loss on disposal of assets, and is inclusive of earnings from joint venture

 

$

20.4

 

$

2.4

 

$

18.0

 

EBITDA*

 

$

74.7

 

$

3.8

 

$

70.9

 

Interest expense

 

$

(25.3

)

$

(6.2

)

$

(19.1

)

Net income

 

$

17.8

 

$

(3.6

)#

$

21.4

 

Diluted EPS

 

$

0.43

 

$

(0.09

)

$

0.52

 

 

*      EBITDA is income from operations excluding charges for depreciation and amortization and gain/loss on disposal of assets, and is inclusive of earnings from joint venture.

 

#      The net loss at Hollywood Casino – Shreveport excludes an after tax management fee of $0.5 million.

 

7

 

Reconciliation of Income From Operations (GAAP) To EBITDA

 

PENN NATIONAL GAMING, INC. AND SUBSIDIARIES

Property Information Including Corporate Overhead

(In thousands) (unaudited)

 

Three Months Ended
March 31, 2004

 

Income
from
operations

 

Depreciation
and
Amortization

 

(Gain)/loss
on sale of
assets

 

Earnings
from joint
venture

 

EBITDA

 

Charles Town Races

 

$

20,272

 

$

4,613

 

$

2

 

$

—

 

$

24,887

 

Casino Rouge

 

7,301

 

1,771

 

173

 

—

 

9,245

 

Casino Magic – Bay St. Louis

 

3,853

 

2,572

 

148

 

—

 

6,573

 

Boomtown Biloxi – Biloxi

 

2,951

 

1,648

 

296

 

—

 

4,895

 

Bullwhackers

 

810

 

347

 

(9

)

—

 

1,148

 

Casino Rama Management Contract

 

3,200

 

—

 

—

 

—

 

3,200

 

Pennsylvania Racing/OTWs

 

1,613

 

783

 

—

 

—

 

2,396

 

Hollywood Casino – Aurora (1)

 

14,608

 

2,630

 

—

 

—

 

17,238

 

Hollywood Casino – Tunica (1)

 

5,215

 

1,738

 

68

 

—

 

7,021

 

Earnings from Pennwood Racing, Inc.

 

—

 

—

 

—

 

460

 

460

 

Corporate overhead

 

(6,919

)

738

 

—

 

—

 

(6,181

)

Sub-total without Hollywood
Casino – Shreveport (1)

 

$

52,904

 

$

16,840

 

$

678

 

$

460

 

$

70,882

 

 

 

 

 

 

 

 

 

 

 

 

 

Hollywood Casino – Shreveport (1)

 

1,390

 

2,426

 

—

 

—

 

3,816

 

Total

 

$

54,294

 

$

19,266

 

$

678

 

$

460

 

$

74,698

 

 

Three Months Ended
March 31, 2003

 

Income
from
operations

 

Depreciation
and
Amortization

 

(Gain)/loss
on sale of
assets

 

Earnings
from joint
venture

 

EBITDA

 

Charles Town Races

 

$

15,192

 

$

3,597

 

$

270

 

$

—

 

$

19,059

 

Casino Rouge

 

7,518

 

1,527

 

—

 

—

 

9,045

 

Casino Magic – Bay St. Louis

 

3,491

 

2,394

 

324

 

—

 

6,209

 

Boomtown Biloxi – Biloxi

 

3,011

 

1,285

 

63

 

—

 

4,359

 

Bullwhackers

 

194

 

202

 

46

 

—

 

442

 

Casino Rama Management Contract

 

2,494

 

—

 

—

 

—

 

2,494

 

Pennsylvania Racing/OTWs

 

2,051

 

859

 

(3

)

—

 

2,907

 

Hollywood Casino – Aurora (1)

 

6,571

 

863

 

—

 

—

 

7,434

 

Hollywood Casino – Tunica (1)

 

1,640

 

576

 

—

 

—

 

2,216

 

Earnings from Pennwood Racing, Inc.

 

—

 

—

 

—

 

588

 

588

 

Corporate overhead

 

(5,347

)

735

 

130

 

—

 

(4,482

)

Sub-total without Hollywood
Casino – Shreveport (1)

 

$

36,815

 

$

12,038

 

$

830

 

$

588

 

$

50,271

 

 

 

 

 

 

 

 

 

 

 

 

 

Hollywood Casino – Shreveport (1)

 

1,988

 

791

 

—

 

—

 

2,779

 

Total

 

$

38,803

 

$

12,829

 

$

830

 

$

588

 

$

53,050

 

 

(1)   Hollywood Casino – Aurora, Hollywood Casino – Tunica and Hollywood Casino – Shreveport were acquired by Penn National Gaming on March 3, 2003 and accounted for as of March 1, 2003.

 

8

 

Reconciliation of Net Income and Net Income Per Share (GAAP) to Adjusted Net Income and Per Share Earnings

 

 

 

Three Months
Ended
March 31,

 

(in millions, except per share
data)

 

2004

 

2003

 

Net income

 

$

17,787

 

$

13,187

 

 

 

 

 

 

 

Add back:

 

 

 

 

 

After tax loss on change in fair value of interest rate swaps#

 

—

 

343

 

After tax loss on early extinguishment of debt#

 

—

 

851

 

 

 

—

 

1,194

 

Adjusted net income

 

$

17,787

 

$

14,381

 

 

 

 

 

 

 

Per share data:

 

 

 

 

 

Diluted net income

 

$

0.43

 

$

0.33

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

After tax loss on change in fair value of interest rate swaps#

 

$

—

 

$

0.01

 

After tax loss on early extinguishment of debt#

 

$

—

 

$

0.02

 

 

 

$

—

 

$

0.03

 

Adjusted diluted net income

 

$

0.43

 

$

0.36

 

 

#      In the three months ended March 31, 2003 Penn National Gaming recorded pre-tax charges of $527 and $1,310 for loss on change in fair values of interest rate swaps and loss on early extinguishment of debt, respectively.  The after tax effect of the 2003 charges for change in fair values of interest rate swaps and loss on early extinguishment of debt was $343 or $0.01 per diluted share and $851 or $0.02 per diluted share, respectively.

 

-income statement follows-

 

9

 

PENN NATIONAL GAMING, INC. AND SUBSIDIARIES

 

Summary Consolidated Statement Of Income

(In thousands, except per share data)

(unaudited)

 

 

Three Months Ended
March 31,

 

 

 

2004

 

2003

 

Revenues:

 

 

 

 

 

Gaming

 

$

283,808

 

$

183,984

 

Racing

 

24,640

 

24,843

 

Management service fee

 

3,458

 

2,699

 

Food, beverage and other revenue

 

41,120

 

25,345

 

Gross Revenues

 

353,026

 

236,871

 

Less: Promotional Allowances

 

(22,255

)

(11,737

)

 

 

 

 

 

 

Net Revenues

 

330,771

 

225,134

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

Gaming

 

154,777

 

101,895

 

Racing

 

18,233

 

18,408

 

Food, beverage and other expenses

 

28,785

 

17,134

 

General and administrative

 

55,416

 

36,065

 

Depreciation and amortization

 

19,266

 

12,829

 

Total operating expenses

 

276,477

 

186,331

 

 

 

 

 

 

 

Income from operations

 

54,294

 

38,803

 

Other income (expense):

 

 

 

 

 

Interest expense

 

(25,698

)

(16,352

)

Interest income

 

389

 

434

 

Earnings from joint venture

 

460

 

588

 

Other

 

(1,078

)

(104

)

Loss on change in fair values of interest rate swaps

 

—

 

(527

)

Loss on early extinguishment of debt

 

—

 

(1,310

)

 

 

 

 

 

 

Total other expense

 

(25,927

)

(17,271

)

 

 

 

 

 

 

Income before income taxes

 

28,367

 

21,532

 

 

 

 

 

 

 

Taxes on income

 

10,580

 

8,345

 

 

 

 

 

 

 

Net income

 

$

17,787

 

$

13,187

 

 

 

 

 

 

 

Per share data:

 

 

 

 

 

Basic net income

 

$

0.45

 

$

0.34

 

Diluted net income

 

$

0.43

 

$

0.33

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

 

 

 

Basic

 

39,589

 

39,219

 

Diluted

 

41,112

 

40,280

 

 

10

 

Reconciliation of Non-GAAP Measures to GAAP

Adjusted net income (and diluted per share earnings) is presented solely as a supplemental disclosure because management believes that it is a widely used measure of performance, and a principal basis for valuation of gaming companies, as this measure is considered by many to be a better measure of the Company’s operating results than GAAP net income.  A reconciliation of GAAP net income and per share earnings to adjusted net income and adjusted diluted per share earnings is included in the financial schedules accompanying this release.

 

EBITDA or earnings before interest, taxes, depreciation and amortization, loss on change in fair value of interest rate swaps and gain/loss on disposal of assets and inclusive of earnings from joint venture, is not a measure of performance or liquidity calculated in accordance with generally accepted accounting principles.  EBITDA information is presented solely as a supplemental disclosure because management believes that it is a widely used measure of such performance in the gaming industry.  EBITDA should not be construed as an alternative to operating income, as an indicator of the Company’s operating performance, or as an alternative to cash flows from operating activities, as a measure of liquidity, or as any other measure of performance determined in accordance with generally accepted accounting principles.  The Company has significant uses of cash flows, including capital expenditures, interest payments, taxes and debt principal repayments, which are not reflected in EBITDA.  It should also be noted that other gaming companies that report EBITDA information may calculate EBITDA in a different manner than the Company.  A reconciliation of GAAP income from operations to EBITDA is included in the financial schedules accompanying this release.

 

Penn National is hosting a conference call and simultaneous webcast at 10:00 am EDT today, both of which are open to the general public.  The conference call number is 212/346-6383 or 415/904-7333; please call five minutes in advance to ensure that you are connected prior to the presentation.  Questions and answers will be reserved for call-in analysts and investors.  Interested parties may also access the live call on the Internet at www.companyboardroom.com; allow 15 minutes to register and download and install any necessary software.  Following its completion, a replay of the call can be accessed until May 5, by dialing 800/633-8284 or 402/977-9140 (international callers).  The access code for the replay is 21192124.  A replay of the call can also be accessed for thirty days on the Internet via www.companyboardroom.com.  This press release, which includes financial information to be discussed by management during the conference call and disclosure and reconciliation of non-GAAP financial measures, is available on the Company’s web site, www.pngaming.com in the “Recent News” section.

 

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Penn National Gaming owns and operates: three Hollywood Casino properties located in Aurora, Illinois, Tunica, Mississippi and Shreveport, Louisiana; Charles Town Races & Slots™ in Charles Town, West Virginia; two Mississippi casinos, the Casino Magic - Bay St. Louis hotel, casino, golf resort and marina in Bay St. Louis and the Boomtown Biloxi casino in Biloxi; the Casino Rouge, a riverboat gaming facility in Baton Rouge, Louisiana and the Bullwhackers casino properties in Black Hawk, Colorado. Penn National also owns two racetracks and eleven off-track wagering facilities in Pennsylvania; the racetrack at Charles Town Races & Slots in West Virginia; a 50% interest in the Pennwood Racing Inc. joint venture which owns and operates Freehold Raceway in New Jersey; and operates Casino Rama, a gaming facility located approximately 90 miles north of Toronto, Canada, pursuant to a management contract.

 

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Actual results may vary materially from expectations.  Although the Company believes that its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially from the Company’s expectations.  Meaningful factors which could cause actual results to differ from expectations include, but are not limited to, risks related to the following: successful completion of capital projects; the activities of the Company’s competitors; the existence of attractive acquisition candidates; the Company’s ability to maintain regulatory approvals for its existing businesses and to receive regulatory approvals for its new businesses; the passage of state, federal or local legislation that would expand, restrict, further tax or prevent gaming operations in the jurisdictions in which the Company operates; the Company’s dependence on key personnel; the Company’s inability to realize the benefits of the integration of Hollywood Casino Corporation or any other acquired entity; the maintenance of agreements with the Company’s horsemen and pari-mutuel clerks; the impact of terrorism and other international hostilities and other factors as discussed in the Company’s filings with the United States Securities and Exchange Commission.  The Company does not intend to update publicly any forward-looking statements except as required by law.

 

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