Feb. 07--Penn National Gaming Inc. reported Thursday a decline in fourth quarter revenue.
The Wyomissing-based casino and racetrack operator posted a revenue of $644.7 million, down 13.3 percent from the 2012 fourth quarter. That's an $888.7 million net loss, or $11.40 per share, compared to net income of $20.24 million, or 19 cents per share, in the same period last year.
The results, said D. Eric Schippers, vice president of public affairs at Penn National, are a combination of a softening of some individual gaming facilities' revenues as well as the spinoff of Gaming and Leisure Properties Inc., or GLPI, which was completed in November and now operates the Louisiana and Maryland casinos previously in the hands of Penn National.
The company noted increased regional competition in its West Virginia and Ohio markets as well as a rough winter in the Midwest and East Coast, which kept customers away.
"Throughout 2013, customer visitation and spending levels from our rated customers remained largely consistent with recent trends," said Timothy J. Wilmott, president and chief executive officer of Penn National, in a statement. "However, we continued to see macro-economic conditions impacting those customers spending less than $100 per visit. In this environment, we continue to aggressively address operating efficiencies while maintaining a disciplined approach to spending on marketing and promotional activities."
The results also reflect $1.06 billion of non-cash impairment charges, $61.7 million of debt extinguishment charges and $14.1 million of transaction costs associated with the spinoff of GLPI.
For fiscal 2014, the company forecasts a conservative net income of $21.9 million or $0.24 per share on revenues of $2.63 billion.
Penn National expects to hear from the Massachusetts Gaming Commission by the end of the month whether it will be selected to build a slots parlor in Massachusetts. In the second quarter, Pennsylvania Gaming Control Board is expected to announce the results for who will win the Philadelphia casino license, for which Penn National was one of five applicants for.
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