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As Of Filer Filing For·On·As Docs:Size 8/04/22 PENN Entertainment, Inc. 10-Q 6/30/22 89:15M |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 3.25M 2: EX-3.1 Articles of Incorporation/Organization or Bylaws HTML 23K 3: EX-3.2 Articles of Incorporation/Organization or Bylaws HTML 23K 4: EX-31.1 Certification -- §302 - SOA'02 HTML 28K 5: EX-31.2 Certification -- §302 - SOA'02 HTML 28K 6: EX-32.1 Certification -- §906 - SOA'02 HTML 25K 7: EX-32.2 Certification -- §906 - SOA'02 HTML 25K 13: R1 Cover HTML 76K 14: R2 Consolidated Balance Sheets HTML 160K 15: R3 Consolidated Balance Sheets (Parenthetical) HTML 53K 16: R4 Consolidated Statements of Operations HTML 117K 17: R5 Consolidated Statements of Comprehensive Income HTML 57K (Loss) 18: R6 Consolidated Statements of Changes in HTML 158K Stockholders? Equity 19: R7 Consolidated Statements of Cash Flows HTML 177K 20: R8 Organization and Basis of Presentation HTML 32K 21: R9 Significant Accounting Policies HTML 94K 22: R10 New Accounting Pronouncements HTML 40K 23: R11 Hurricane Laura HTML 39K 24: R12 Revenue Disaggregation HTML 135K 25: R13 Acquisitions and Dispositions HTML 53K 26: R14 Goodwill and Other Intangible Assets HTML 93K 27: R15 Long-term Debt HTML 102K 28: R16 Leases HTML 301K 29: R17 Investments in and Advances to Unconsolidated HTML 38K Affiliates 30: R18 Income Taxes HTML 31K 31: R19 Commitments and Contingencies HTML 26K 32: R20 Stockholders? Equity and Stock-Based Compensation HTML 46K 33: R21 Earnings per Share HTML 81K 34: R22 Fair Value Measurements HTML 128K 35: R23 Segment Information HTML 145K 36: R24 Significant Accounting Policies (Policies) HTML 118K 37: R25 Significant Accounting Policies (Tables) HTML 193K 38: R26 Hurricane Laura (Tables) HTML 36K 39: R27 Revenue Disaggregation (Tables) HTML 131K 40: R28 Acquisitions and Dispositions (Tables) HTML 52K 41: R29 Goodwill and Other Intangible Assets (Tables) HTML 128K 42: R30 Long-term Debt (Tables) HTML 89K 43: R31 Leases (Tables) HTML 144K 44: R32 Earnings per Share (Tables) HTML 79K 45: R33 Fair Value Measurements (Tables) HTML 120K 46: R34 Segment Information (Tables) HTML 179K 47: R35 Organization and Basis of Presentation (Details) HTML 33K 48: R36 Significant Accounting Policies - Segment HTML 35K Information (Details) 49: R37 Significant Accounting Policies - Revenue HTML 33K Recognition (Details) 50: R38 Significant Accounting Policies - Customer-Related HTML 38K Liabilities (Details) 51: R39 Significant Accounting Policies - Advertising HTML 25K (Details) 52: R40 Significant Accounting Policies - Gaming and HTML 25K Racing Taxes (Details) 53: R41 New Accounting Pronouncements (Details) HTML 52K 54: R42 Hurricane Laura - Narrative (Details) HTML 32K 55: R43 Hurricane Laura - Summary of Financial Impact of HTML 38K Hurricane Laura (Details) 56: R44 Revenue Disaggregation (Details) HTML 91K 57: R45 Acquisitions and Dispositions - Narrative HTML 92K (Details) 58: R46 Acquisitions and Dispositions - Allocation of HTML 71K Purchase Price (Details) 59: R47 Acquisitions and Dispositions - Actual and Pro HTML 40K Forma Financial Results (Details) 60: R48 Goodwill and Other Intangible Assets - Goodwill HTML 59K and Accumulated Goodwill Impairment Losses (Details) 61: R49 Goodwill and Other Intangible Assets - Narrative HTML 32K (Details) 62: R50 Goodwill and Other Intangible Assets - Intangible HTML 54K Assets (Details) 63: R51 Goodwill and Other Intangible Assets - Expected HTML 38K Intangible Asset Amortization Expense (Details) 64: R52 Long-term Debt - Debt Summary (Details) HTML 64K 65: R53 Long-term Debt - Debt Maturities (Details) HTML 42K 66: R54 Long-term Debt - Senior Secured Credit Facilities, HTML 255K Senior Unsecured Notes, Unsecured Convertible Notes, and Covenants (Details) 67: R55 Long-term Debt - Convertible Notes (Details) HTML 40K 68: R56 Long-term Debt - Interest Expense, Net (Details) HTML 48K 69: R57 Long-term Debt - Other Long-term Obligations HTML 57K (Details) 70: R58 Leases - Narrative (Details) HTML 133K 71: R59 Leases - Future Minimum Lease Commitments HTML 92K (Details) 72: R60 Leases - Triple Net Leases (Details) HTML 41K 73: R61 Leases - Components of Lease Expense (Details) HTML 54K 74: R62 Investments in and Advances to Unconsolidated HTML 128K Affiliates (Details) 75: R63 Income Taxes (Details) HTML 32K 76: R64 Stockholders? Equity and Stock-Based Compensation HTML 270K (Details) 77: R65 Earnings per Share - Antidilutive Securities and HTML 61K Reconciliation of Weighted-Average Common Shares Outstanding (Details) 78: R66 Earnings per Share - Narrative (Details) HTML 29K 79: R67 Earnings per Share - Calculation of Basic and HTML 67K Diluted EPS (Details) 80: R68 Fair Value Measurements - Narrative (Details) HTML 78K 81: R69 Fair Value Measurements - Carrying Amounts and HTML 118K Estimated Fair Values by Input Level (Details) 82: R70 Fair Value Measurements - Changes in Fair Value of HTML 34K Level 3 Liabilities (Details) 83: R71 Fair Value Measurements - Significant Unobservable HTML 33K Inputs For Level 3 Assets and Liabilities (Details) 84: R72 Segment Information (Details) HTML 146K 87: XML IDEA XML File -- Filing Summary XML 157K 85: XML XBRL Instance -- penn-20220630_htm XML 4.62M 86: EXCEL IDEA Workbook of Financial Reports XLSX 246K 9: EX-101.CAL XBRL Calculations -- penn-20220630_cal XML 302K 10: EX-101.DEF XBRL Definitions -- penn-20220630_def XML 1.16M 11: EX-101.LAB XBRL Labels -- penn-20220630_lab XML 2.49M 12: EX-101.PRE XBRL Presentations -- penn-20220630_pre XML 1.51M 8: EX-101.SCH XBRL Schema -- penn-20220630 XSD 261K 88: JSON XBRL Instance as JSON Data -- MetaLinks 570± 866K 89: ZIP XBRL Zipped Folder -- 0000921738-22-000037-xbrl Zip 682K
penn-20220630 |
i ☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
i ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
i Pennsylvania | i 23-2234473 | ||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. employer identification no.) | ||||||||||
i 825 Berkshire Blvd., Suite 200 | i Wyomissing, | i Pennsylvania | i 19610 | ||||||||
(Address
of principal executive offices) | (Zip code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
i Common Stock, $0.01 par value per share | i PENN | i The Nasdaq Stock Market LLC |
i Large accelerated filer | ☑ | Accelerated filer | ☐ | ||||||||
Non-accelerated filer | ☐ | Smaller reporting company | i ☐ | ||||||||
Emerging growth company | i ☐ |
Page | ||||||||
(in millions, except share and per share data) | June 30, 2022 | December 31, 2021 | |||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | i 1,708.3 | $ | i 1,863.9 | |||||||
Accounts receivable, net | i 169.4 | i 195.0 | |||||||||
Prepaid expenses | i 132.8 | i 132.3 | |||||||||
Other current assets | i 48.4 | i 32.4 | |||||||||
Total current assets | i 2,058.9 | i 2,223.6 | |||||||||
Property and equipment, net | i 4,539.7 | i 4,582.2 | |||||||||
Investment in and advances to unconsolidated affiliates | i 250.3 | i 255.1 | |||||||||
Goodwill | i 2,799.6 | i 2,822.5 | |||||||||
Other intangible assets, net | i 1,842.1 | i 1,872.6 | |||||||||
Lease right-of-use assets | i 6,181.3 | i 4,853.0 | |||||||||
Other assets | i 208.9 | i 263.1 | |||||||||
Total assets | $ | i 17,880.8 | $ | i 16,872.1 | |||||||
Liabilities | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | i 38.9 | $ | i 53.3 | |||||||
Current maturities of long-term debt | i 55.8 | i 99.5 | |||||||||
Current portion of financing obligations | i 63.8 | i 39.0 | |||||||||
Current portion of lease liabilities | i 189.7 | i 142.9 | |||||||||
Accrued expenses and other current liabilities | i 737.7 | i 798.5 | |||||||||
Total current liabilities | i 1,085.9 | i 1,133.2 | |||||||||
Long-term debt, net of current maturities, debt discount and debt issuance costs | i 2,730.4 | i 2,637.3 | |||||||||
Long-term portion of financing obligations | i 4,001.3 | i 4,057.8 | |||||||||
Long-term portion of lease liabilities | i 5,941.7 | i 4,628.6 | |||||||||
Deferred income taxes | i 227.9 | i 189.1 | |||||||||
Other long-term liabilities | i 127.6 | i 129.0 | |||||||||
Total liabilities | i 14,114.8 | i 12,775.0 | |||||||||
i | i | ||||||||||
Stockholders’ equity | |||||||||||
Series B
Preferred stock ($ i i 0.01 / par value,
i i 1,000,000 / shares authorized,
i i i i no / / /
shares issued and outstanding) | i — | i — | |||||||||
Series C
Preferred stock ($ i i 0.01 / par value,
i i 18,500 / shares authorized,
i i i i no / / /
shares issued and outstanding) | i — | i — | |||||||||
Series D
Preferred stock ($ i i 0.01 / par value,
i i 5,000 / shares authorized, i i 969 /
shares issued in both periods, and i 581 and i 775 shares outstanding) | i 19.4 | i 25.8 | |||||||||
Common
stock ($ i i 0.01 / par value, i i 400,000,000 /
shares authorized in both periods, i 172,234,701 and i 171,729,276 shares issued, and i 160,725,723
and i 169,561,883 shares outstanding) | i 1.7 | i 1.7 | |||||||||
Exchangeable
shares ($ i i 0.01 / par value, i i i i 697,539 / / /
shares authorized and issued in both periods, i 624,658 and i 653,059 shares outstanding) | i — | i — | |||||||||
Treasury
stock, at cost, ( i 11,508,978 and i 2,167,393 shares) | ( i 370.5) | ( i 28.4) | |||||||||
Additional paid-in capital | i 4,187.3 | i 4,239.6 | |||||||||
Retained earnings (accumulated deficit) | i 10.2 | ( i 86.5) | |||||||||
Accumulated other comprehensive loss | ( i 81.3) | ( i 54.4) | |||||||||
Total PENN Entertainment stockholders’ equity | i 3,766.8 | i 4,097.8 | |||||||||
Non-controlling interest | ( i 0.8) | ( i 0.7) | |||||||||
Total stockholders’ equity | i 3,766.0 | i 4,097.1 | |||||||||
Total liabilities and stockholders’ equity | $ | i 17,880.8 | $ | i 16,872.1 |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
(in millions, except per share data) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Revenues | |||||||||||||||||||||||
Gaming | $ | i 1,325.6 | $ | i 1,305.5 | $ | i 2,616.8 | $ | i 2,387.5 | |||||||||||||||
Food, beverage, hotel and other | i 301.3 | i 240.3 | i 574.3 | i 433.2 | |||||||||||||||||||
Total revenues | i 1,626.9 | i 1,545.8 | i 3,191.1 | i 2,820.7 | |||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Gaming | i 713.6 | i 620.9 | i 1,400.2 | i 1,148.7 | |||||||||||||||||||
Food, beverage, hotel and other | i 186.8 | i 148.6 | i 358.7 | i 271.7 | |||||||||||||||||||
General and administrative | i 273.8 | i 316.5 | i 569.3 | i 642.7 | |||||||||||||||||||
Depreciation and amortization | i 150.3 | i 81.9 | i 268.5 | i 163.2 | |||||||||||||||||||
Total operating expenses | i 1,324.5 | i 1,167.9 | i 2,596.7 | i 2,226.3 | |||||||||||||||||||
Operating income | i 302.4 | i 377.9 | i 594.4 | i 594.4 | |||||||||||||||||||
Other income (expenses) | |||||||||||||||||||||||
Interest expense, net | ( i 193.6) | ( i 138.0) | ( i 354.4) | ( i 273.7) | |||||||||||||||||||
Income from unconsolidated affiliates | i 1.8 | i 9.1 | i 10.5 | i 18.7 | |||||||||||||||||||
Other | ( i 28.2) | i 2.8 | ( i 68.9) | i 23.9 | |||||||||||||||||||
Total other expenses | ( i 220.0) | ( i 126.1) | ( i 412.8) | ( i 231.1) | |||||||||||||||||||
Income before income taxes | i 82.4 | i 251.8 | i 181.6 | i 363.3 | |||||||||||||||||||
Income tax expense | ( i 56.3) | ( i 53.1) | ( i 103.9) | ( i 73.7) | |||||||||||||||||||
Net income | i 26.1 | i 198.7 | i 77.7 | i 289.6 | |||||||||||||||||||
Less: Net loss attributable to non-controlling interest | i — | i — | i 0.1 | i 0.1 | |||||||||||||||||||
Net income attributable to PENN Entertainment | $ | i 26.1 | $ | i 198.7 | $ | i 77.8 | $ | i 289.7 | |||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic earnings per share | $ | i 0.16 | $ | i 1.27 | $ | i 0.47 | $ | i 1.85 | |||||||||||||||
Diluted earnings per share | $ | i 0.15 | $ | i 1.17 | $ | i 0.45 | $ | i 1.72 | |||||||||||||||
Weighted-average common shares outstanding—basic | i 164.8 | i 156.0 | i 166.5 | i 155.8 | |||||||||||||||||||
Weighted-average common shares outstanding—diluted | i 180.2 | i 172.7 | i 182.3 | i 172.8 |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net income | $ | i 26.1 | $ | i 198.7 | $ | i 77.7 | $ | i 289.6 | |||||||||||||||
Other comprehensive loss: | |||||||||||||||||||||||
Foreign currency translation adjustment during the period | ( i 62.7) | i — | ( i 26.9) | i — | |||||||||||||||||||
Other comprehensive loss | ( i 62.7) | i — | ( i 26.9) | i — | |||||||||||||||||||
Total comprehensive income (loss) | ( i 36.6) | i 198.7 | i 50.8 | i 289.6 | |||||||||||||||||||
Less: Comprehensive loss attributable to non-controlling interest | i — | i — | i 0.1 | i 0.1 | |||||||||||||||||||
Comprehensive income (loss) attributable to PENN Entertainment | $ | ( i 36.6) | $ | i 198.7 | $ | i 50.9 | $ | i 289.7 |
Three Months Ended June 30, 2022 and 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Total PENN Stockholders’ Equity | Non-Controlling Interest | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions, except share data) | Shares | Amount | PENN Entertainment Shares | Amount | Exchangeable Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 1, 2022 | i 581 | $ | i 19.4 | i 166,161,818 | $ | i 1.7 | i 633,189 | $ | i — | $ | ( i 203.5) | $ | i 4,170.4 | $ | ( i 15.9) | $ | ( i 18.6) | $ | i 3,953.5 | $ | ( i 0.8) | $ | i 3,952.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation arrangements | — | — | i 30,551 | — | — | — | — | i 14.5 | — | — | i 14.5 | — | i 14.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share repurchases (Note 13) | — | — | ( i 5,539,177) | — | — | — | ( i 167.0) | — | — | — | ( i 167.0) | — | ( i 167.0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issuance (Note 13) | — | — | i 64,000 | — | — | — | — | i 2.0 | — | — | i 2.0 | — | i 2.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchangeable shares conversions (Note 13) | — | — | i 8,531 | — | ( i 8,531) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment | — | — | — | — | — | — | — | — | — | ( i 62.7) | ( i 62.7) | — | ( i 62.7) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | i 26.1 | — | i 26.1 | — | i 26.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | i 0.4 | — | — | i 0.4 | — | i 0.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | i 581 | $ | i 19.4 | i 160,725,723 | $ | i 1.7 | i 624,658 | $ | i — | $ | ( i 370.5) | $ | i 4,187.3 | $ | i 10.2 | $ | ( i 81.3) | $ | i 3,766.8 | $ | ( i 0.8) | $ | i 3,766.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 1, 2021 | i 775 | $ | i 24.2 | i 156,330,141 | $ | i 1.6 | i — | $ | i — | $ | ( i 28.4) | $ | i 3,175.2 | $ | ( i 416.3) | $ | i — | $ | i 2,756.3 | $ | ( i 0.5) | $ | i 2,755.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation arrangements | — | — | i 413,048 | — | — | — | — | i 9.4 | — | — | i 9.4 | — | i 9.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share issuance (Note 13) | — | — | i 43,684 | — | — | — | — | i 3.5 | — | — | i 3.5 | — | i 3.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | i 198.7 | — | i 198.7 | — | i 198.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | ( i 9.6) | — | — | ( i 9.6) | — | ( i 9.6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2021 | i 775 | $ | i 24.2 | i 156,786,873 | $ | i 1.6 | i — | $ | i — | $ | ( i 28.4) | $ | i 3,178.5 | $ | ( i 217.6) | $ | i — | $ | i 2,958.3 | $ | ( i 0.5) | $ | i 2,957.8 |
Six Months Ended June 30, 2022 and 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Total PENN Stockholders’ Equity | Non-Controlling Interest | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions, except share data) | Shares | Amount | PENN Entertainment Shares | Amount | Exchangeable Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2022 | i 775 | $ | i 25.8 | i 169,561,883 | $ | i 1.7 | i 653,059 | $ | i — | $ | ( i 28.4) | $ | i 4,239.6 | $ | ( i 86.5) | $ | ( i 54.4) | $ | i 4,097.8 | $ | ( i 0.7) | $ | i 4,097.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation arrangements | — | — | i 218,824 | — | — | — | — | i 31.5 | — | — | i 31.5 | — | i 31.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share repurchases (Note 13) | — | — | ( i 9,341,585) | — | — | — | ( i 342.1) | — | — | — | ( i 342.1) | — | ( i 342.1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock conversions (Note 13) | ( i 194) | ( i 6.4) | i 194,200 | — | — | — | — | i 6.4 | — | — | — | — | i — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issuance (Note 13) | — | — | i 64,000 | — | — | — | — | i 2.0 | — | — | i 2.0 | — | i 2.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchangeable shares conversions (Note 13) | — | — | i 28,401 | — | ( i 28,401) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment | — | — | — | — | — | — | — | — | — | ( i 26.9) | ( i 26.9) | — | ( i 26.9) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative-effect adjustment upon adoption of ASU 2020-06 | — | — | — | — | — | — | — | ( i 88.2) | i 18.9 | — | ( i 69.3) | — | ( i 69.3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | — | i 77.8 | — | i 77.8 | ( i i 0.1 / ) | i 77.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | ( i 4.0) | — | — | ( i 4.0) | — | ( i 4.0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | i 581 | $ | i 19.4 | i 160,725,723 | $ | i 1.7 | i 624,658 | $ | i — | $ | ( i 370.5) | $ | i 4,187.3 | $ | i 10.2 | $ | ( i 81.3) | $ | i 3,766.8 | $ | ( i 0.8) | $ | i 3,766.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2021 | i 883 | $ | i 23.1 | i 155,700,834 | $ | i 1.6 | i — | $ | i — | $ | ( i 28.4) | $ | i 3,167.2 | $ | ( i 507.3) | $ | i — | $ | i 2,656.2 | $ | ( i 0.4) | $ | i 2,655.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation arrangements | — | — | i 891,155 | — | — | — | — | i 13.4 | — | — | i 13.4 | — | i 13.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share issuance (Note 13) | i 43 | i 5.1 | i 43,684 | — | — | — | — | i 3.5 | — | — | i 8.6 | — | i 8.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock conversion (Note 13) | ( i 151) | ( i 4.0) | i 151,200 | — | — | — | — | i 4.0 | — | — | i — | — | i — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | — | i 289.7 | — | i 289.7 | ( i 0.1) | i 289.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | ( i 9.6) | — | — | ( i 9.6) | — | ( i 9.6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2021 | i 775 | $ | i 24.2 | i 156,786,873 | $ | i 1.6 | i — | $ | i — | $ | ( i 28.4) | $ | i 3,178.5 | $ | ( i 217.6) | $ | i — | $ | i 2,958.3 | $ | ( i 0.5) | $ | i 2,957.8 |
For the six months ended June 30, | |||||||||||
(in millions) | 2022 | 2021 | |||||||||
Operating activities | |||||||||||
Net income | $ | i 77.7 | $ | i 289.6 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | i 268.5 | i 163.2 | |||||||||
Amortization of debt discount and debt issuance costs | i 4.9 | i 11.0 | |||||||||
Noncash interest expense | i 12.9 | i 5.2 | |||||||||
Noncash operating lease expense | i 47.2 | i 75.5 | |||||||||
Holding loss (gain) on equity securities | i 55.6 | ( i 18.8) | |||||||||
Loss (gain) on sale or disposal of property and equipment | i 7.2 | ( i 0.2) | |||||||||
Gain on Hurricane Laura | ( i 8.8) | i — | |||||||||
Income from unconsolidated affiliates | ( i 10.5) | ( i 18.7) | |||||||||
Return on investment from unconsolidated affiliates | i 17.0 | i 13.4 | |||||||||
Deferred income taxes | i 39.6 | i 21.8 | |||||||||
Stock-based compensation | i 31.5 | i 13.4 | |||||||||
Loss on early extinguishment of debt | i 10.4 | i — | |||||||||
Changes in operating assets and liabilities, net of businesses acquired | |||||||||||
Accounts receivable | i 7.7 | ( i 42.1) | |||||||||
Prepaid expenses and other current assets | ( i 31.5) | ( i 22.0) | |||||||||
Other assets | i 7.6 | ( i 8.4) | |||||||||
Accounts payable | ( i 14.4) | i 1.0 | |||||||||
Accrued expenses | ( i 23.0) | i 55.3 | |||||||||
Income taxes | i 15.4 | i 21.1 | |||||||||
Operating lease liabilities | ( i 43.2) | ( i 63.2) | |||||||||
Other current and long-term liabilities | ( i 36.6) | i 7.5 | |||||||||
Other | i 1.2 | i — | |||||||||
Net cash provided by operating activities | i 436.4 | i 504.6 | |||||||||
Investing activities | |||||||||||
Capital expenditures | ( i 125.6) | ( i 64.6) | |||||||||
Proceeds from sale of property and equipment | i 4.6 | i 0.4 | |||||||||
Hurricane Laura insurance proceeds | i 24.2 | i — | |||||||||
Consideration paid for acquisitions of businesses, net of cash acquired | i — | ( i 6.2) | |||||||||
Consideration paid for a cost method investment | ( i 15.0) | i — | |||||||||
Consideration paid for gaming licenses and other intangible assets | ( i 1.9) | ( i 18.7) | |||||||||
Other | i — | ( i 10.0) | |||||||||
Net cash used in investing activities | ( i 113.7) | ( i 99.1) |
For the six months ended June 30, | |||||||||||
(in millions) | 2022 | 2021 | |||||||||
Financing activities | |||||||||||
Proceeds from issuance of long-term debt, net of discounts | i 1,545.0 | i — | |||||||||
Repayments on credit facilities (Note 8) | ( i 1,543.2) | i — | |||||||||
Principal payments on long-term debt | ( i 20.5) | ( i 32.2) | |||||||||
Debt issuance costs | ( i 18.2) | i — | |||||||||
Proceeds from other long-term obligations | i — | i 72.5 | |||||||||
Payments of other long-term obligations | ( i 9.1) | ( i 8.6) | |||||||||
Principal payments on financing obligations | ( i 31.9) | ( i 17.7) | |||||||||
Principal payments on finance leases | ( i 53.5) | ( i 3.4) | |||||||||
Proceeds from exercise of options | i 2.8 | i 8.5 | |||||||||
Repurchase of common stock | ( i 342.1) | i — | |||||||||
Proceeds from insurance financing | i — | i 26.6 | |||||||||
Payments on insurance financing | i — | ( i 17.5) | |||||||||
Other | ( i 6.6) | ( i 9.4) | |||||||||
Net cash (used in) provided by financing activities | ( i 477.3) | i 18.8 | |||||||||
Effect of currency rate changes on cash, cash equivalents, and restricted cash | ( i 0.6) | i — | |||||||||
Change in cash, cash equivalents, and restricted cash | ( i 155.2) | i 424.3 | |||||||||
Cash, cash equivalents and restricted cash at the beginning of the year | i 1,880.1 | i 1,870.4 | |||||||||
Cash, cash equivalents and restricted cash at the end of the period | $ | i 1,724.9 | $ | i 2,294.7 | |||||||
Reconciliation of cash, cash equivalents and restricted cash: | |||||||||||
Cash and cash equivalents | $ | i 1,708.3 | $ | i 2,274.7 | |||||||
Restricted cash included in Other current assets | i 15.4 | i 18.8 | |||||||||
Restricted cash included in Other assets | i 1.2 | i 1.2 | |||||||||
Total cash, cash equivalents and restricted cash | $ | i 1,724.9 | $ | i 2,294.7 | |||||||
Supplemental disclosure: | |||||||||||
Cash paid for interest, net of amounts capitalized | $ | i 338.5 | $ | i 275.2 | |||||||
Cash payments related to income taxes, net | $ | i 45.5 | $ | i 27.7 | |||||||
Non-cash activities: | |||||||||||
Commencement of operating leases | $ | i 39.0 | $ | i 28.9 | |||||||
Commencement of finance leases | $ | i 1,417.1 | $ | i — | |||||||
Accrued capital expenditures | $ | i 25.5 | $ | i 25.5 |
Location | Real Estate Assets Lease or Ownership Structure | ||||||||||
Northeast segment | |||||||||||
Ameristar East Chicago | East Chicago, Indiana | Pinnacle Master Lease | |||||||||
Hollywood Casino at Greektown | Detroit, Michigan | Greektown Lease | |||||||||
Hollywood Casino Bangor | Bangor, Maine | PENN Master Lease | |||||||||
Hollywood Casino at Charles Town Races | Charles Town, West Virginia | PENN Master Lease | |||||||||
Hollywood Casino Columbus | Columbus, Ohio | PENN Master Lease | |||||||||
Hollywood Casino Lawrenceburg | Lawrenceburg, Indiana | PENN Master Lease | |||||||||
Hollywood Casino Morgantown | Morgantown, Pennsylvania | Morgantown Lease | |||||||||
Hollywood Casino at PENN National Race Course | Grantville, Pennsylvania | PENN Master Lease | |||||||||
Hollywood Casino Perryville | Perryville, Maryland | Perryville Lease | |||||||||
Hollywood Casino Toledo | Toledo, Ohio | PENN Master Lease | |||||||||
Hollywood Casino York | York, Pennsylvania | Operating Lease (not with REIT Landlord) | |||||||||
Hollywood Gaming at Dayton Raceway | Dayton, Ohio | PENN Master Lease | |||||||||
Hollywood Gaming at Mahoning Valley Race Course | Youngstown, Ohio | PENN Master Lease | |||||||||
Marquee by PENN (1) | Pennsylvania | N/A | |||||||||
Hollywood Casino at Meadows Racetrack | Washington, Pennsylvania | Meadows Lease | |||||||||
Plainridge Park Casino | Plainville, Massachusetts | Pinnacle Master Lease | |||||||||
South segment | |||||||||||
1st Jackpot Casino | Tunica, Mississippi | PENN Master Lease | |||||||||
Ameristar Vicksburg | Vicksburg, Mississippi | Pinnacle Master Lease | |||||||||
Boomtown Biloxi | Biloxi, Mississippi | PENN Master Lease | |||||||||
Boomtown Bossier City | Bossier City, Louisiana | Pinnacle Master Lease | |||||||||
Boomtown New Orleans | New Orleans, Louisiana | Pinnacle Master Lease | |||||||||
Hollywood Casino Gulf Coast | Bay St. Louis, Mississippi | PENN Master Lease | |||||||||
Hollywood Casino Tunica | Tunica, Mississippi | PENN Master Lease | |||||||||
L’Auberge Baton Rouge | Baton Rouge, Louisiana | Pinnacle Master Lease | |||||||||
L’Auberge Lake Charles | Lake Charles, Louisiana | Pinnacle Master Lease | |||||||||
Margaritaville Resort Casino | Bossier City, Louisiana | Margaritaville Lease | |||||||||
West segment | |||||||||||
Ameristar Black Hawk | Black Hawk, Colorado | Pinnacle Master Lease | |||||||||
Cactus Petes and Horseshu | Jackpot, Nevada | Pinnacle Master Lease | |||||||||
M Resort | Henderson, Nevada | PENN Master Lease | |||||||||
Tropicana Las Vegas | Las Vegas, Nevada | Tropicana Lease | |||||||||
Zia Park Casino | Hobbs, New Mexico | PENN Master Lease | |||||||||
Midwest segment | |||||||||||
Ameristar Council Bluffs | Council Bluffs, Iowa | Pinnacle Master Lease | |||||||||
Argosy Casino Alton (2) | Alton, Illinois | PENN Master Lease | |||||||||
Argosy Casino Riverside | Riverside, Missouri | PENN Master Lease | |||||||||
Hollywood Casino Aurora | Aurora, Illinois | PENN Master Lease | |||||||||
Hollywood Casino Joliet | Joliet, Illinois | PENN Master Lease | |||||||||
Hollywood Casino at Kansas Speedway (3) | Kansas City, Kansas | Owned - JV | |||||||||
Hollywood Casino St. Louis | Maryland Heights, Missouri | PENN Master Lease | |||||||||
Prairie State Gaming (1) | Illinois | N/A | |||||||||
River City Casino | St. Louis, Missouri | Pinnacle Master Lease |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Food and beverage | $ | i 52.1 | $ | i 44.1 | $ | i 102.8 | $ | i 80.2 | |||||||||||||||
Hotel | i 36.6 | i 30.7 | i 68.8 | i 57.1 | |||||||||||||||||||
Other | i 2.8 | i 2.1 | i 5.3 | i 4.0 | |||||||||||||||||||
Total complimentaries associated with gaming contracts | $ | i 91.5 | $ | i 76.9 | $ | i 176.9 | $ | i 141.3 |
(in millions) | June 30, 2022 | December 31, 2021 | |||||||||
Insurance proceeds received through the end of the period | $ | i 85.0 | $ | i 47.5 | |||||||
Deductible | $ | i 15.0 | $ | i 15.0 | |||||||
Coinsurance | $ | i 2.5 | $ | i 2.5 | |||||||
Clean-up, restoration, and other costs | $ | i 52.8 | $ | i 52.8 | |||||||
Fixed asset write-off | $ | i 23.2 | $ | i 23.2 | |||||||
Inventory write-off | $ | i 0.2 | $ | i 0.2 | |||||||
Insurance receivable | $ | i — | $ | i 28.7 |
For the three months ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Northeast | South | West | Midwest | Interactive | Other | Intersegment Eliminations (1) | Total | |||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||
Gaming | $ | i 621.4 | $ | i 269.0 | $ | i 98.9 | $ | i 267.0 | $ | i 69.3 | $ | i — | $ | i — | $ | i 1,325.6 | |||||||||||||||||||||||||||||||
Food and beverage | i 31.5 | i 33.0 | i 21.6 | i 13.2 | i — | i 1.3 | i — | i 100.6 | |||||||||||||||||||||||||||||||||||||||
Hotel | i 10.3 | i 26.0 | i 26.4 | i 9.1 | i — | i — | i — | i 71.8 | |||||||||||||||||||||||||||||||||||||||
Other | i 21.7 | i 10.6 | i 6.9 | i 7.0 | i 85.6 | i 4.6 | ( i 7.5) | i 128.9 | |||||||||||||||||||||||||||||||||||||||
Total revenues | $ | i 684.9 | $ | i 338.6 | $ | i 153.8 | $ | i 296.3 | $ | i 154.9 | $ | i 5.9 | $ | ( i 7.5) | $ | i 1,626.9 |
For the three months ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Northeast | South | West | Midwest | Interactive | Other | Intersegment Eliminations (1) | Total | |||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||
Gaming | $ | i 602.5 | $ | i 304.4 | $ | i 96.7 | $ | i 272.1 | $ | i 29.8 | $ | i — | $ | i — | $ | i 1,305.5 | |||||||||||||||||||||||||||||||
Food and beverage | i 24.1 | i 29.4 | i 18.2 | i 9.7 | i — | i 0.2 | i — | i 81.6 | |||||||||||||||||||||||||||||||||||||||
Hotel | i 6.7 | i 24.1 | i 19.9 | i 7.0 | i — | i — | i — | i 57.7 | |||||||||||||||||||||||||||||||||||||||
Other | i 19.2 | i 10.3 | i 5.6 | i 6.0 | i 66.2 | i 1.5 | ( i 7.8) | i 101.0 | |||||||||||||||||||||||||||||||||||||||
Total revenues | $ | i 652.5 | $ | i 368.2 | $ | i 140.4 | $ | i 294.8 | $ | i 96.0 | $ | i 1.7 | $ | ( i 7.8) | $ | i 1,545.8 |
For the six months ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Northeast | South | West | Midwest | Interactive | Other | Intersegment Eliminations (1) | Total | |||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||
Gaming | $ | i 1,220.5 | $ | i 547.6 | $ | i 193.0 | $ | i 523.5 | $ | i 132.2 | $ | i — | $ | i — | $ | i 2,616.8 | |||||||||||||||||||||||||||||||
Food and beverage | i 63.4 | i 64.0 | i 40.9 | i 25.7 | i — | i 2.5 | i — | i 196.5 | |||||||||||||||||||||||||||||||||||||||
Hotel | i 18.4 | i 48.0 | i 48.7 | i 16.7 | i — | i — | i — | i 131.8 | |||||||||||||||||||||||||||||||||||||||
Other | i 41.1 | i 20.4 | i 12.1 | i 13.3 | i 164.2 | i 10.7 | ( i 15.8) | i 246.0 | |||||||||||||||||||||||||||||||||||||||
Total revenues | $ | i 1,343.4 | $ | i 680.0 | $ | i 294.7 | $ | i 579.2 | $ | i 296.4 | $ | i 13.2 | $ | ( i 15.8) | $ | i 3,191.1 |
For the six months ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Northeast | South | West | Midwest | Interactive | Other | Intersegment Eliminations (1) | Total | |||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||
Gaming | $ | i 1,129.5 | $ | i 549.8 | $ | i 165.8 | $ | i 489.0 | $ | i 53.4 | $ | i — | $ | i — | $ | i 2,387.5 | |||||||||||||||||||||||||||||||
Food and beverage | i 45.0 | i 52.5 | i 30.1 | i 16.7 | i — | i 0.3 | i — | i 144.6 | |||||||||||||||||||||||||||||||||||||||
Hotel | i 12.5 | i 43.7 | i 32.4 | i 12.9 | i — | i — | i — | i 101.5 | |||||||||||||||||||||||||||||||||||||||
Other | i 36.4 | i 18.1 | i 8.7 | i 10.9 | i 128.9 | i 3.0 | ( i 18.9) | i 187.1 | |||||||||||||||||||||||||||||||||||||||
Total revenues | $ | i 1,223.4 | $ | i 664.1 | $ | i 237.0 | $ | i 529.5 | $ | i 182.3 | $ | i 3.3 | $ | ( i 18.9) | $ | i 2,820.7 |
(in millions) | Fair value | ||||
Cash and cash equivalents | $ | i 160.3 | |||
Other current assets | i 22.8 | ||||
ROU assets | i 2.6 | ||||
Property and equipment | i 1.8 | ||||
Goodwill | i 1,690.2 | ||||
Other intangible assets | |||||
Gaming technology | i 160.0 | ||||
Media technology | i 57.0 | ||||
Tradename | i 100.0 | ||||
Advertising relationships | i 11.0 | ||||
Customer relationships | i 8.0 | ||||
Re-acquired right | i 2.6 | ||||
Other long-term assets | i 5.2 | ||||
Total assets | $ | i 2,221.5 | |||
Accounts payable, accrued expenses and other current liabilities | $ | i 67.9 | |||
Deferred tax liabilities | i 69.2 | ||||
Other non-current liabilities | i 1.7 | ||||
Total liabilities | i 138.8 | ||||
Net assets acquired | $ | i 2,082.7 |
Intangible Asset | Valuation Approach | ||||
Gaming technology | Relief-from-royalty (variation of income approach) | ||||
Media technology | Replacement cost | ||||
Tradename | Relief-from-royalty (variation of income approach) | ||||
Advertising relationships | With-and-without (variation of income approach) | ||||
Customer relationships | Replacement cost | ||||
Re-acquired right | Replacement cost |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||
(in millions) | 2021 | ||||||||||
Revenues | $ | i 1,580.8 | $ | i 2,886.8 | |||||||
Net income | $ | i 191.6 | $ | i 227.7 |
(in millions) | Northeast | South | West | Midwest | Interactive | Other | Total | ||||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
Goodwill, gross | $ | i 923.5 | $ | i 236.6 | $ | i 216.8 | $ | i 1,116.7 | $ | i 1,724.0 | $ | i 87.7 | $ | i 4,305.3 | |||||||||||||||||||||||||||
Accumulated goodwill impairment losses | ( i 761.4) | ( i 61.0) | ( i 16.6) | ( i 556.1) | i — | ( i 87.7) | ( i 1,482.8) | ||||||||||||||||||||||||||||||||||
Goodwill, net | $ | i 162.1 | $ | i 175.6 | $ | i 200.2 | $ | i 560.6 | $ | i 1,724.0 | $ | i — | $ | i 2,822.5 | |||||||||||||||||||||||||||
Effect of foreign currency exchange rates | i — | i — | i — | i — | ( i 22.9) | i — | ( i 22.9) | ||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||
Goodwill, gross | $ | i 923.5 | $ | i 236.6 | $ | i 216.8 | $ | i 1,116.7 | $ | i 1,701.1 | $ | i 87.7 | $ | i 4,282.4 | |||||||||||||||||||||||||||
Accumulated goodwill impairment losses | ( i 761.4) | ( i 61.0) | ( i 16.6) | ( i 556.1) | i — | ( i 87.7) | ( i 1,482.8) | ||||||||||||||||||||||||||||||||||
Goodwill, net | $ | i 162.1 | $ | i 175.6 | $ | i 200.2 | $ | i 560.6 | $ | i 1,701.1 | $ | i — | $ | i 2,799.6 |
June 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
(in millions) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||||||||||
Indefinite-lived intangible assets | |||||||||||||||||||||||||||||||||||
Gaming licenses | $ | i 1,285.4 | $ | — | $ | i 1,285.4 | $ | i 1,285.4 | $ | — | $ | i 1,285.4 | |||||||||||||||||||||||
Trademarks | i 337.0 | — | i 337.0 | i 338.2 | — | i 338.2 | |||||||||||||||||||||||||||||
Other | i 0.7 | — | i 0.7 | i 0.7 | — | i 0.7 | |||||||||||||||||||||||||||||
Amortizing intangible assets | |||||||||||||||||||||||||||||||||||
Customer relationships | i 114.7 | ( i 97.7) | i 17.0 | i 114.9 | ( i 91.4) | i 23.5 | |||||||||||||||||||||||||||||
Technology | i 251.8 | ( i 60.3) | i 191.5 | i 252.7 | ( i 40.5) | i 212.2 | |||||||||||||||||||||||||||||
Other | i 19.2 | ( i 8.7) | i 10.5 | i 19.4 | ( i 6.8) | i 12.6 | |||||||||||||||||||||||||||||
Total other intangible assets | $ | i 2,008.8 | $ | ( i 166.7) | $ | i 1,842.1 | $ | i 2,011.3 | $ | ( i 138.7) | $ | i 1,872.6 |
Years ending December 31, | |||||
2022 (excluding the six months ended June 30, 2022) | $ | i 28.3 | |||
2023 | i 49.4 | ||||
2024 | i 45.4 | ||||
2025 | i 30.3 | ||||
2026 | i 23.9 | ||||
Thereafter | i 41.7 | ||||
Total | $ | i 219.0 |
(in millions) | June 30, 2022 | December 31, 2021 | |||||||||
Senior Secured Credit Facilities: | |||||||||||
Amended Revolving Credit Facility due 2027 | $ | i — | $ | i — | |||||||
Amended Term Loan A Facility due 2027 | i 550.0 | i — | |||||||||
Amended Term Loan B Facility due 2029 | i 1,000.0 | i — | |||||||||
Term Loan A Facility due 2023 | i — | i 583.8 | |||||||||
Term Loan B-1 Facility due 2025 | i — | i 979.9 | |||||||||
i 5.625%
Notes due 2027 | i 400.0 | i 400.0 | |||||||||
i 4.125%
Notes due 2029 | i 400.0 | i 400.0 | |||||||||
i 2.75%
Convertible Notes due 2026 | i 330.5 | i 330.5 | |||||||||
Other long-term obligations | i 150.1 | i 146.3 | |||||||||
i 2,830.6 | i 2,840.5 | ||||||||||
Less: Current maturities of long-term debt | ( i 55.8) | ( i 99.5) | |||||||||
Less: Debt discount | ( i 4.9) | ( i 73.1) | |||||||||
Less: Debt issuance costs | ( i 39.5) | ( i 30.6) | |||||||||
$ | i 2,730.4 | $ | i 2,637.3 |
Years ending December 31: | |||||
2022 (excluding the six months ended June 30, 2022) | $ | i 27.4 | |||
2023 | i 56.2 | ||||
2024 | i 47.6 | ||||
2025 | i 38.2 | ||||
2026 | i 472.0 | ||||
Thereafter | i 2,189.2 | ||||
Total minimum payments | $ | i 2,830.6 |
(in millions) | June 30, 2022 | December
31, 2021 | |||||||||
Liability component: | |||||||||||
Principal | $ | i 330.5 | $ | i 330.5 | |||||||
Unamortized debt discount | i — | ( i 71.7) | |||||||||
Unamortized debt issuance costs | ( i 7.0) | ( i 5.3) | |||||||||
Net carrying amount | $ | i 323.5 | $ | i 253.5 | |||||||
Carrying amount of equity component | $ | i — | $ | i 88.2 |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Interest expense | $ | ( i 195.3) | $ | ( i 139.1) | $ | ( i 356.9) | $ | ( i 275.7) | |||||||||||||||
Interest income | i 1.3 | i 0.2 | i 1.8 | i 0.4 | |||||||||||||||||||
Capitalized interest | i 0.4 | i 0.9 | i 0.7 | i 1.6 | |||||||||||||||||||
Interest expense, net | $ | ( i 193.6) | $ | ( i 138.0) | $ | ( i 354.4) | $ | ( i 273.7) |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Coupon interest | $ | i 2.2 | $ | i 2.2 | $ | i 4.5 | $ | i 4.5 | |||||||||||||||
Amortization of debt discount | i — | i 3.1 | i — | i 6.2 | |||||||||||||||||||
Amortization of debt issuance costs | i 0.4 | i 0.3 | i 0.8 | i 0.5 | |||||||||||||||||||
Convertible Notes interest expense | $ | i 2.6 | $ | i 5.6 | $ | i 5.3 | $ | i 11.2 |
(in millions) | Operating Leases | Finance Leases | Financing Obligations | ||||||||||||||
Year ended December 31, | |||||||||||||||||
2022 (excluding the six months ended June 30, 2022) | $ | i 68.0 | $ | i 193.2 | $ | i 186.3 | |||||||||||
2023 | i 125.2 | i 375.2 | i 369.8 | ||||||||||||||
2024 | i 119.9 | i 347.9 | i 355.3 | ||||||||||||||
2025 | i 116.6 | i 346.9 | i 355.4 | ||||||||||||||
2026 | i 112.2 | i 346.9 | i 355.4 | ||||||||||||||
Thereafter | i 1,341.4 | i 7,873.5 | i 8,285.7 | ||||||||||||||
Total lease payments | i 1,883.3 | i 9,483.6 | i 9,907.9 | ||||||||||||||
Less: Imputed interest | ( i 814.0) | ( i 4,421.5) | ( i 5,842.8) | ||||||||||||||
Present value of future lease payments | i 1,069.3 | i 5,062.1 | i 4,065.1 | ||||||||||||||
Less: Current portion of lease obligations | ( i 74.2) | ( i 115.5) | ( i 63.8) | ||||||||||||||
Long-term portion of lease obligations | $ | i 995.1 | $ | i 4,946.6 | $ | i 4,001.3 | |||||||||||
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
PENN Master Lease | $ | i 120.6 | $ | i 120.7 | $ | i 239.8 | $ | i 238.7 | |||||||||||||||
Pinnacle Master Lease | i 83.4 | i 82.1 | i 165.9 | i 163.4 | |||||||||||||||||||
Perryville Lease | i 2.0 | i — | i 3.9 | i — | |||||||||||||||||||
Meadows Lease | i 6.2 | i 6.2 | i 12.4 | i 12.4 | |||||||||||||||||||
Margaritaville Lease | i 6.0 | i 5.9 | i 11.9 | i 11.7 | |||||||||||||||||||
Greektown Lease | i 12.9 | i 13.5 | i 25.7 | i 27.4 | |||||||||||||||||||
Morgantown Lease | i 0.7 | i 0.7 | i 1.5 | i 1.5 | |||||||||||||||||||
Total
(1) | $ | i 231.8 | $ | i 229.1 | $ | i 461.1 | $ | i 455.1 |
Location
on unaudited Consolidated Statements of Operations | For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Operating Lease Costs | |||||||||||||||||||||||||||||
Rent
expense associated with triple net operating leases (1) | General and administrative | $ | i 28.0 | $ | i 116.5 | $ | i 88.1 | $ | i 226.9 | ||||||||||||||||||||
Operating
lease cost (2) | Primarily General and administrative | i 4.9 | i 3.9 | i 9.9 | i 7.8 | ||||||||||||||||||||||||
Short-term lease cost | Primarily Gaming expense | i 18.5 | i 15.5 | i 36.6 | i 28.8 | ||||||||||||||||||||||||
Variable
lease cost (2) | Primarily Gaming expense | i 1.2 | i 1.0 | i 2.3 | i 2.1 | ||||||||||||||||||||||||
Total | $ | i 52.6 | $ | i 136.9 | $ | i 136.9 | $ | i 265.6 | |||||||||||||||||||||
Finance Lease Costs | |||||||||||||||||||||||||||||
Interest on lease liabilities (3) | Interest expense, net | $ | i 75.7 | $ | i 3.7 | $ | i 115.2 | $ | i 7.4 | ||||||||||||||||||||
Amortization
of ROU assets (3) | Depreciation and amortization | i 48.8 | i 2.1 | i 80.9 | i 4.0 | ||||||||||||||||||||||||
Total | $ | i 124.5 | $ | i 5.8 | $ | i 196.1 | $ | i 11.4 | |||||||||||||||||||||
Financing Obligation Costs | |||||||||||||||||||||||||||||
Interest on financing obligations (4) | Interest expense, net | $ | i 85.2 | $ | i 105.3 | $ | i 174.8 | $ | i 207.9 |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net income attributable to PENN Entertainment | $ | i 26.1 | $ | i 198.7 | $ | i 77.8 | $ | i 289.7 | |||||||||||||||
Net income applicable to preferred stock | i 0.1 | i 1.0 | i 0.3 | i 1.5 | |||||||||||||||||||
Net income applicable to common stock | $ | i 26.0 | $ | i 197.7 | $ | i 77.5 | $ | i 288.2 |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Weighted-average common shares outstanding | i 164.8 | i 156.0 | i 166.5 | i 155.8 | |||||||||||||||||||
Assumed conversion of: | |||||||||||||||||||||||
Dilutive stock options | i 1.1 | i 2.2 | i 1.4 | i 2.4 | |||||||||||||||||||
Dilutive restricted stock | i 0.2 | i 0.4 | i 0.3 | i 0.5 | |||||||||||||||||||
Convertible debt | i 14.1 | i 14.1 | i 14.1 | i 14.1 | |||||||||||||||||||
Weighted-average common shares outstanding - Diluted | i 180.2 | i 172.7 | i 182.3 | i 172.8 |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
(in millions, except per share data) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Calculation of basic earnings per share: | |||||||||||||||||||||||
Net income applicable to common stock | $ | i 26.0 | $ | i 197.7 | $ | i 77.5 | $ | i 288.2 | |||||||||||||||
Weighted-average shares outstanding - PENN Entertainment | i 164.2 | i 156.0 | i 165.9 | i 155.8 | |||||||||||||||||||
Weighted-average shares outstanding - Exchangeable Shares | i 0.6 | i — | i 0.6 | i — | |||||||||||||||||||
Weighted-average common shares outstanding - basic | i 164.8 | i 156.0 | i 166.5 | i 155.8 | |||||||||||||||||||
Basic earnings per share | $ | i 0.16 | $ | i 1.27 | $ | i 0.47 | $ | i 1.85 | |||||||||||||||
Calculation of diluted earnings per share: | |||||||||||||||||||||||
Net income applicable to common stock | $ | i 26.0 | $ | i 197.7 | $ | i 77.5 | $ | i 288.2 | |||||||||||||||
Interest
expense, net of tax (1): | |||||||||||||||||||||||
Convertible Notes | i 1.8 | i 4.3 | i 3.7 | i 8.6 | |||||||||||||||||||
Diluted income applicable to common stock | $ | i 27.8 | $ | i 202.0 | $ | i 81.2 | $ | i 296.8 | |||||||||||||||
Weighted-average common shares outstanding - diluted | i 180.2 | i 172.7 | i 182.3 | i 172.8 | |||||||||||||||||||
Diluted earnings per share | $ | i 0.15 | $ | i 1.17 | $ | i 0.45 | $ | i 1.72 |
June 30, 2022 | |||||||||||||||||||||||||||||
(in millions) | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | i 1,708.3 | $ | i 1,708.3 | $ | i 1,708.3 | $ | i — | $ | i — | |||||||||||||||||||
Equity securities | $ | i 31.4 | $ | i 31.4 | $ | i — | $ | i 31.4 | $ | i — | |||||||||||||||||||
Held-to-maturity securities | $ | i 6.7 | $ | i 6.7 | $ | i — | $ | i 6.7 | $ | i — | |||||||||||||||||||
Promissory notes | $ | i 7.9 | $ | i 7.9 | $ | i — | $ | i 7.9 | $ | i — | |||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||
Senior Secured Credit Facilities | $ | i 1,519.7 | $ | i 1,496.8 | $ | i 1,496.8 | $ | i — | $ | i — | |||||||||||||||||||
i 5.625%
Notes | $ | i 399.6 | $ | i 350.0 | $ | i 350.0 | $ | i — | $ | i — | |||||||||||||||||||
i 4.125%
Notes | $ | i 393.3 | $ | i 305.0 | $ | i 305.0 | $ | i — | $ | i — | |||||||||||||||||||
Convertible Notes | $ | i 323.5 | $ | i 489.7 | $ | i 489.7 | $ | i — | $ | i — | |||||||||||||||||||
Other long-term obligations | $ | i 150.1 | $ | i 148.3 | $ | i — | $ | i 45.0 | $ | i 103.3 | |||||||||||||||||||
Other liabilities | $ | i 11.4 | $ | i 11.3 | $ | i — | $ | i 2.6 | $ | i 8.7 | |||||||||||||||||||
Puts and calls related to certain Barstool Sports shares | $ | i 0.6 | $ | i 0.6 | $ | i — | $ | i 0.6 | $ | i — |
December 31, 2021 | |||||||||||||||||||||||||||||
(in millions) | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | i 1,863.9 | $ | i 1,863.9 | $ | i 1,863.9 | $ | i — | $ | i — | |||||||||||||||||||
Equity securities | $ | i 84.3 | $ | i 84.3 | $ | i — | $ | i 84.3 | $ | i — | |||||||||||||||||||
Held-to-maturity securities | $ | i 6.7 | $ | i 6.7 | $ | i — | $ | i 6.7 | $ | i — | |||||||||||||||||||
Promissory notes | $ | i 15.1 | $ | i 15.1 | $ | i — | $ | i 15.1 | $ | i — | |||||||||||||||||||
Puts and calls related to certain Barstool Sports shares | $ | i 1.9 | $ | i 1.9 | $ | i — | $ | i 1.9 | $ | i — | |||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||
Senior Secured Credit Facilities | $ | i 1,544.5 | $ | i 1,559.6 | $ | i 1,559.6 | $ | i — | $ | i — | |||||||||||||||||||
i 5.625%
Notes | $ | i 399.6 | $ | i 411.5 | $ | i 411.5 | $ | i — | $ | i — | |||||||||||||||||||
i 4.125%
Notes | $ | i 392.9 | $ | i 389.5 | $ | i 389.5 | $ | i — | $ | i — | |||||||||||||||||||
Convertible notes | $ | i 253.5 | $ | i 780.0 | $ | i 780.0 | $ | i — | $ | i — | |||||||||||||||||||
Other long-term obligations | $ | i 146.3 | $ | i 144.3 | $ | i — | $ | i 53.9 | $ | i 90.4 | |||||||||||||||||||
Other liabilities | $ | i 13.3 | $ | i 13.2 | $ | i — | $ | i 2.7 | $ | i 10.5 |
(in millions) | Other Liabilities | ||||
Balance as of January 1, 2022 | $ | i 100.9 | |||
Interest | i 12.9 | ||||
Payment installments | ( i 0.8) | ||||
Included in earnings (1) | ( i 1.0) | ||||
Balance as of June 30, 2022 | $ | i 112.0 |
Valuation Technique | Unobservable Input | Discount Rate | |||||||||||||||
Other long-term obligation | Discounted cash flow | Discount rate | i 27.0% | ||||||||||||||
Contingent purchase price - Plainridge Park Casino | Discounted cash flow | Discount rate | i 9.1% |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Northeast segment | $ | i 684.9 | $ | i 652.5 | $ | i 1,343.4 | $ | i 1,223.4 | |||||||||||||||
South segment | i 338.6 | i 368.2 | i 680.0 | i 664.1 | |||||||||||||||||||
West segment | i 153.8 | i 140.4 | i 294.7 | i 237.0 | |||||||||||||||||||
Midwest segment | i 296.3 | i 294.8 | i 579.2 | i 529.5 | |||||||||||||||||||
Interactive segment | i 154.9 | i 96.0 | i 296.4 | i 182.3 | |||||||||||||||||||
Other
(1) | i 5.9 | i 1.7 | i 13.2 | i 3.3 | |||||||||||||||||||
Intersegment
eliminations (2) | ( i 7.5) | ( i 7.8) | ( i 15.8) | ( i 18.9) | |||||||||||||||||||
Total | $ | i 1,626.9 | $ | i 1,545.8 | $ | i 3,191.1 | $ | i 2,820.7 | |||||||||||||||
Adjusted
EBITDAR (3): | |||||||||||||||||||||||
Northeast segment | $ | i 214.4 | $ | i 231.6 | $ | i 419.6 | $ | i 424.8 | |||||||||||||||
South segment | i 143.3 | i 177.1 | i 289.8 | i 311.0 | |||||||||||||||||||
West segment | i 59.7 | i 61.4 | i 110.9 | i 96.6 | |||||||||||||||||||
Midwest segment | i 131.3 | i 142.2 | i 256.8 | i 248.2 | |||||||||||||||||||
Interactive segment | ( i 20.8) | i 1.2 | ( i 30.8) | i 2.5 | |||||||||||||||||||
Other
(1) | ( i 23.4) | ( i 26.9) | ( i 47.1) | ( i 49.5) | |||||||||||||||||||
Total
(3) | i 504.5 | i 586.6 | i 999.2 | i 1,033.6 | |||||||||||||||||||
Other operating benefits (costs) and other income (expenses): | |||||||||||||||||||||||
Rent expense associated with triple net operating
leases (4) | ( i 28.0) | ( i 116.5) | ( i 88.1) | ( i 226.9) | |||||||||||||||||||
Stock-based compensation | ( i 14.5) | ( i 9.2) | ( i 31.5) | ( i 13.4) | |||||||||||||||||||
Cash-settled stock-based awards variance | i 9.5 | i 12.4 | i 12.4 | ( i 9.1) | |||||||||||||||||||
Gain (loss) on disposal of assets | ( i 7.3) | i 0.1 | ( i 7.2) | i 0.2 | |||||||||||||||||||
Contingent purchase price | i 0.9 | ( i 1.2) | i 1.0 | ( i 1.3) | |||||||||||||||||||
Pre-opening
expenses (5) | ( i 2.1) | i 0.4 | ( i 3.6) | ( i 1.2) | |||||||||||||||||||
Depreciation and amortization | ( i 150.3) | ( i 81.9) | ( i 268.5) | ( i 163.2) | |||||||||||||||||||
Insurance recoveries, net of deductible charges | i — | i — | i 8.8 | i — | |||||||||||||||||||
Non-operating
items of equity method investments (6) | ( i 0.3) | ( i 1.4) | ( i 2.1) | ( i 3.0) | |||||||||||||||||||
Interest expense, net | ( i 193.6) | ( i 138.0) | ( i 354.4) | ( i 273.7) | |||||||||||||||||||
Other
(5)(7) | ( i 36.4) | i 0.5 | ( i 84.4) | i 21.3 | |||||||||||||||||||
Income before income taxes | i 82.4 | i 251.8 | i 181.6 | i 363.3 | |||||||||||||||||||
Income tax expense | ( i 56.3) | ( i 53.1) | ( i 103.9) | ( i 73.7) | |||||||||||||||||||
Net income | $ | i 26.1 | $ | i 198.7 | $ | i 77.7 | $ | i 289.6 |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Capital expenditures: | |||||||||||||||||||||||
Northeast segment | $ | i 25.1 | $ | i 20.8 | $ | i 55.7 | $ | i 36.2 | |||||||||||||||
South segment | i 16.6 | i 6.3 | i 36.3 | i 8.1 | |||||||||||||||||||
West segment | i 2.2 | i — | i 4.0 | i 3.2 | |||||||||||||||||||
Midwest segment | i 7.4 | i 3.6 | i 14.2 | i 5.5 | |||||||||||||||||||
Interactive segment | i 2.1 | i 0.6 | i 3.2 | i 1.4 | |||||||||||||||||||
Other | i 6.6 | i 7.6 | i 12.2 | i 10.2 | |||||||||||||||||||
Total capital expenditures | $ | i 60.0 | $ | i 38.9 | $ | i 125.6 | $ | i 64.6 |
(in millions) | Northeast | South | West | Midwest | Interactive | Other (1) | Total | ||||||||||||||||||||||||||||||||||
Balance sheet as of June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||
Investment in and advances to unconsolidated affiliates | $ | i 0.1 | $ | i — | $ | i — | $ | i 82.4 | $ | i 161.3 | $ | i 6.5 | $ | i 250.3 | |||||||||||||||||||||||||||
Total assets | $ | i 2,228.7 | $ | i 1,166.2 | $ | i 381.8 | $ | i 1,393.9 | $ | i 2,526.4 | $ | i 10,183.8 | $ | i 17,880.8 | |||||||||||||||||||||||||||
Balance sheet as of December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
Investment in and advances to unconsolidated affiliates | $ | i 0.1 | $ | i — | $ | i — | $ | i 83.8 | $ | i 164.4 | $ | i 6.8 | $ | i 255.1 | |||||||||||||||||||||||||||
Total assets | $ | i 2,283.6 | $ | i 1,224.6 | $ | i 394.8 | $ | i 1,215.8 | $ | i 2,618.3 | $ | i 9,135.0 | $ | i 16,872.1 |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Northeast segment | $ | 684.9 | $ | 652.5 | $ | 1,343.4 | $ | 1,223.4 | |||||||||||||||
South segment | 338.6 | 368.2 | 680.0 | 664.1 | |||||||||||||||||||
West segment | 153.8 | 140.4 | 294.7 | 237.0 | |||||||||||||||||||
Midwest segment | 296.3 | 294.8 | 579.2 | 529.5 | |||||||||||||||||||
Interactive segment | 154.9 | 96.0 | 296.4 | 182.3 | |||||||||||||||||||
Other (1) | 5.9 | 1.7 | 13.2 | 3.3 | |||||||||||||||||||
Intersegment eliminations (2) | (7.5) | (7.8) | (15.8) | (18.9) | |||||||||||||||||||
Total | $ | 1,626.9 | $ | 1,545.8 | $ | 3,191.1 | $ | 2,820.7 | |||||||||||||||
Net income | $ | 26.1 | $ | 198.7 | $ | 77.7 | $ | 289.6 | |||||||||||||||
Adjusted EBITDAR: | |||||||||||||||||||||||
Northeast segment | $ | 214.4 | $ | 231.6 | $ | 419.6 | $ | 424.8 | |||||||||||||||
South segment | 143.3 | 177.1 | 289.8 | 311.0 | |||||||||||||||||||
West segment | 59.7 | 61.4 | 110.9 | 96.6 | |||||||||||||||||||
Midwest segment | 131.3 | 142.2 | 256.8 | 248.2 | |||||||||||||||||||
Interactive segment | (20.8) | 1.2 | (30.8) | 2.5 | |||||||||||||||||||
Other
(1) | (23.4) | (26.9) | (47.1) | (49.5) | |||||||||||||||||||
Total (3) | 504.5 | 586.6 | 999.2 | 1,033.6 | |||||||||||||||||||
Rent
expense associated with triple net operating leases (4) | (28.0) | (116.5) | (88.1) | (226.9) | |||||||||||||||||||
Adjusted EBITDA | $ | 476.5 | $ | 470.1 | $ | 911.1 | $ | 806.7 | |||||||||||||||
Net income margin | 1.6 | % | 12.9 | % | 2.4 | % | 10.3 | % | |||||||||||||||
Adjusted EBITDAR margin | 31.0 | % | 37.9 | % | 31.3 | % | 36.6 | % | |||||||||||||||
Adjusted
EBITDA margin | 29.3 | % | 30.4 | % | 28.6 | % | 28.6 | % |
For the three months ended June 30, | Change | For the six months ended June 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2022 | 2021 | $ | % | 2022 | 2021 | $ | % | |||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||||
Gaming | $ | 1,325.6 | $ | 1,305.5 | $ | 20.1 | 1.5 | % | $ | 2,616.8 | $ | 2,387.5 | $ | 229.3 | 9.6 | % | |||||||||||||||||||||||||||||||
Food, beverage, hotel and other | 301.3 | 240.3 | 61.0 | 25.4 | % | 574.3 | 433.2 | 141.1 | 32.6 | % | |||||||||||||||||||||||||||||||||||||
Total revenues | $ | 1,626.9 | $ | 1,545.8 | $ | 81.1 | 5.2 | % | $ | 3,191.1 | $ | 2,820.7 | $ | 370.4 | 13.1 | % |
For the three months ended June 30, | Change | For the six months ended June 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2022 | 2021 | $ | % | 2022 | 2021 | $ | % | |||||||||||||||||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||||||||||||||
Gaming | $ | 713.6 | $ | 620.9 | $ | 92.7 | 14.9 | % | $ | 1,400.2 | $ | 1,148.7 | $ | 251.5 | 21.9 | % | |||||||||||||||||||||||||||||||
Food, beverage, hotel and other | 186.8 | 148.6 | 38.2 | 25.7 | % | 358.7 | 271.7 | 87.0 | 32.0 | % | |||||||||||||||||||||||||||||||||||||
General and administrative | 273.8 | 316.5 | (42.7) | (13.5) | % | 569.3 | 642.7 | (73.4) | (11.4) | % | |||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 150.3 | 81.9 | 68.4 | 83.5 | % | 268.5 | 163.2 | 105.3 | 64.5 | % | |||||||||||||||||||||||||||||||||||||
Total operating expenses | $ | 1,324.5 | $ | 1,167.9 | $ | 156.6 | 13.4 | % | $ | 2,596.7 | $ | 2,226.3 | $ | 370.4 | 16.6 | % |
For the three months ended June 30, | Change | For the six months ended June 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2022 | 2021 | $ | % | 2022 | 2021 | $ | % | |||||||||||||||||||||||||||||||||||||||
Other income (expenses) | |||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | $ | (193.6) | $ | (138.0) | $ | (55.6) | 40.3 | % | $ | (354.4) | $ | (273.7) | $ | (80.7) | 29.5 | % | |||||||||||||||||||||||||||||||
Income from unconsolidated affiliates | $ | 1.8 | $ | 9.1 | $ | (7.3) | (80.2) | % | $ | 10.5 | $ | 18.7 | $ | (8.2) | (43.9) | % | |||||||||||||||||||||||||||||||
Other | $ | (28.2) | $ | 2.8 | $ | (31.0) | N/M | $ | (68.9) | $ | 23.9 | $ | (92.8) | N/M | |||||||||||||||||||||||||||||||||
Income tax expense | $ | (56.3) | $ | (53.1) | $ | (3.2) | 6.0 | % | $ | (103.9) | $ | (73.7) | $ | (30.2) | 41.0 | % |
For the three months ended June 30, | Change | For the six months ended June 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2022 | 2021 | $ | % | 2022 | 2021 | $ | % | |||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||||
Gaming | $ | 621.4 | $ | 602.5 | $ | 18.9 | 3.1 | % | $ | 1,220.5 | $ | 1,129.5 | $ | 91.0 | 8.1 | % | |||||||||||||||||||||||||||||||
Food, beverage, hotel and other | 63.5 | 50.0 | 13.5 | 27.0 | % | 122.9 | 93.9 | 29.0 | 30.9 | % | |||||||||||||||||||||||||||||||||||||
Total revenues | $ | 684.9 | $ | 652.5 | $ | 32.4 | 5.0 | % | $ | 1,343.4 | $ | 1,223.4 | $ | 120.0 | 9.8 | % | |||||||||||||||||||||||||||||||
Adjusted EBITDAR | $ | 214.4 | $ | 231.6 | $ | (17.2) | (7.4) | % | $ | 419.6 | $ | 424.8 | $ | (5.2) | (1.2) | % | |||||||||||||||||||||||||||||||
Adjusted EBITDAR margin | 31.3 | % | 35.5 | % | -420 bps | 31.2 | % | 34.7 | % | -350 bps |
For the three months ended June 30, | Change | For the six months ended June 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2022 | 2021 | $ | % | 2022 | 2021 | $ | % | |||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||||
Gaming | $ | 269.0 | $ | 304.4 | $ | (35.4) | (11.6) | % | $ | 547.6 | $ | 549.8 | $ | (2.2) | (0.4) | % | |||||||||||||||||||||||||||||||
Food, beverage, hotel and other | 69.6 | 63.8 | 5.8 | 9.1 | % | 132.4 | 114.3 | 18.1 | 15.8 | % | |||||||||||||||||||||||||||||||||||||
Total revenues | $ | 338.6 | $ | 368.2 | $ | (29.6) | (8.0) | % | $ | 680.0 | $ | 664.1 | $ | 15.9 | 2.4 | % | |||||||||||||||||||||||||||||||
Adjusted EBITDAR | $ | 143.3 | $ | 177.1 | $ | (33.8) | (19.1) | % | $ | 289.8 | $ | 311.0 | $ | (21.2) | (6.8) | % | |||||||||||||||||||||||||||||||
Adjusted EBITDAR margin | 42.3 | % | 48.1 | % | -580 bps | 42.6 | % | 46.8 | % | -420 bps |
For the three months ended June 30, | Change | For the six months ended June 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2022 | 2021 | $ | % | 2022 | 2021 | $ | % | |||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||||
Gaming | $ | 98.9 | $ | 96.7 | $ | 2.2 | 2.3 | % | $ | 193.0 | $ | 165.8 | $ | 27.2 | 16.4 | % | |||||||||||||||||||||||||||||||
Food, beverage, hotel and other | 54.9 | 43.7 | 11.2 | 25.6 | % | 101.7 | 71.2 | 30.5 | 42.8 | % | |||||||||||||||||||||||||||||||||||||
Total revenues | $ | 153.8 | $ | 140.4 | $ | 13.4 | 9.5 | % | $ | 294.7 | $ | 237.0 | $ | 57.7 | 24.3 | % | |||||||||||||||||||||||||||||||
Adjusted EBITDAR | $ | 59.7 | $ | 61.4 | $ | (1.7) | (2.8) | % | $ | 110.9 | $ | 96.6 | $ | 14.3 | 14.8 | % | |||||||||||||||||||||||||||||||
Adjusted EBITDAR margin | 38.8 | % | 43.7 | % | -490 bps | 37.6 | % | 40.8 | % | -320 bps |
For the three months ended June 30, | Change | For the six months ended June 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2022 | 2021 | $ | % | 2022 | 2021 | $ | % | |||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||||
Gaming | $ | 267.0 | $ | 272.1 | $ | (5.1) | (1.9) | % | $ | 523.5 | $ | 489.0 | $ | 34.5 | 7.1 | % | |||||||||||||||||||||||||||||||
Food, beverage, hotel and other | 29.3 | 22.7 | 6.6 | 29.1 | % | 55.7 | 40.5 | 15.2 | 37.5 | % | |||||||||||||||||||||||||||||||||||||
Total revenues | $ | 296.3 | $ | 294.8 | $ | 1.5 | 0.5 | % | $ | 579.2 | $ | 529.5 | $ | 49.7 | 9.4 | % | |||||||||||||||||||||||||||||||
Adjusted EBITDAR | $ | 131.3 | $ | 142.2 | $ | (10.9) | (7.7) | % | $ | 256.8 | $ | 248.2 | $ | 8.6 | 3.5 | % | |||||||||||||||||||||||||||||||
Adjusted EBITDAR margin | 44.3 | % | 48.2 | % | -390 bps | 44.3 | % | 46.9 | % | -260 bps |
For the three months ended June 30, | Change | For the six months ended June 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2022 | 2021 | $ | % | 2022 | 2021 | $ | % | |||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||||
Gaming | $ | 69.3 | $ | 29.8 | $ | 39.5 | 132.6 | % | $ | 132.2 | $ | 53.4 | $ | 78.8 | 147.6 | % | |||||||||||||||||||||||||||||||
Food, beverage, hotel and other | 85.6 | 66.2 | 19.4 | 29.3 | % | 164.2 | 128.9 | 35.3 | 27.4 | % | |||||||||||||||||||||||||||||||||||||
Total revenues | $ | 154.9 | $ | 96.0 | $ | 58.9 | 61.4 | % | $ | 296.4 | $ | 182.3 | $ | 114.1 | 62.6 | % | |||||||||||||||||||||||||||||||
Adjusted EBITDAR | $ | (20.8) | $ | 1.2 | $ | (22.0) | N/M | $ | (30.8) | $ | 2.5 | $ | (33.3) | N/M | |||||||||||||||||||||||||||||||||
Adjusted EBITDAR margin | (13.4) | % | 1.3 | % | N/M | (10.4) | % | 1.4 | % | N/M |
For the three months ended June 30, | Change | For the six months ended June 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2022 | 2021 | $ | % | 2022 | 2021 | $ | % | |||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||||
Food, beverage, and other | $ | 5.9 | $ | 1.7 | $ | 4.2 | 247.1 | % | 13.2 | 3.3 | 9.9 | 300.0 | % | ||||||||||||||||||||||||||||||||||
Total revenues | $ | 5.9 | $ | 1.7 | $ | 4.2 | 247.1 | % | $ | 13.2 | $ | 3.3 | $ | 9.9 | 300.0 | % | |||||||||||||||||||||||||||||||
Adjusted EBITDAR | $ | (23.4) | $ | (26.9) | $ | 3.5 | 13.0 | % | $ | (47.1) | $ | (49.5) | $ | 2.4 | 4.8 | % |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||
(dollars in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net income | $ | 26.1 | $ | 198.7 | $ | 77.7 | $ | 289.6 | |||||||||||||||
Income tax expense | 56.3 | 53.1 | 103.9 | 73.7 | |||||||||||||||||||
Income from unconsolidated affiliates | (1.8) | (9.1) | (10.5) | (18.7) | |||||||||||||||||||
Interest expense, net | 193.6 | 138.0 | 354.4 | 273.7 | |||||||||||||||||||
Other (income) expenses | 28.2 | (2.8) | 68.9 | (23.9) | |||||||||||||||||||
Operating income | 302.4 | 377.9 | 594.4 | 594.4 | |||||||||||||||||||
Stock-based
compensation (1) | 14.5 | 9.2 | 31.5 | 13.4 | |||||||||||||||||||
Cash-settled stock-based award variance (1)(2) | (9.5) | (12.4) | (12.4) | 9.1 | |||||||||||||||||||
Loss
(gain) on disposal of assets (1) | 7.3 | (0.1) | 7.2 | (0.2) | |||||||||||||||||||
Contingent purchase price (1) | (0.9) | 1.2 | (1.0) | 1.3 | |||||||||||||||||||
Pre-opening
expenses (1)(3) | 2.1 | (0.4) | 3.6 | 1.2 | |||||||||||||||||||
Depreciation and amortization | 150.3 | 81.9 | 268.5 | 163.2 | |||||||||||||||||||
Insurance
recoveries, net of deductible charges (1) | — | — | (8.8) | — | |||||||||||||||||||
Income from unconsolidated affiliates | 1.8 | 9.1 | 10.5 | 18.7 | |||||||||||||||||||
Non-operating items of equity method
investments (4) | 0.3 | 1.4 | 2.1 | 3.0 | |||||||||||||||||||
Other expenses (1)(3)(5) | 8.2 | 2.3 | 15.5 | 2.6 | |||||||||||||||||||
Adjusted EBITDA | 476.5 | 470.1 | 911.1 | 806.7 | |||||||||||||||||||
Rent
expense associated with triple net operating leases (1) | 28.0 | 116.5 | 88.1 | 226.9 | |||||||||||||||||||
Adjusted EBITDAR | $ | 504.5 | $ | 586.6 | $ | 999.2 | $ | 1,033.6 | |||||||||||||||
Net income margin | 1.6 | % | 12.9 | % | 2.4 | % | 10.3 | % | |||||||||||||||
Adjusted EBITDA margin | 29.3 | % | 30.4 | % | 28.6 | % | 28.6 | % | |||||||||||||||
Adjusted EBITDAR margin | 31.0 | % | 37.9 | % | 31.3 | % | 36.6 | % |
For the six months ended June 30, | Change | |||||||||||||||||||||||||
(dollars in millions) | 2022 | 2021 | $ | % | ||||||||||||||||||||||
Net cash provided by operating activities | $ | 436.4 | $ | 504.6 | $ | (68.2) | (13.5)% | |||||||||||||||||||
Net cash used in investing activities | $ | (113.7) | $ | (99.1) | $ | (14.6) | 14.7% | |||||||||||||||||||
Net cash (used in) provided by financing activities | $ | (477.3) | $ | 18.8 | $ | (496.1) | N/M |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||
(in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||
PENN Master Lease | $ | 120.6 | $ | 120.7 | $ | 239.8 | $ | 238.7 | |||||||||||||||||||||||||||||||||
Pinnacle Master Lease | 83.4 | 82.1 | 165.9 | 163.4 | |||||||||||||||||||||||||||||||||||||
Perryville Lease | 2.0 | — | 3.9 | — | |||||||||||||||||||||||||||||||||||||
Meadows Lease | 6.2 | 6.2 | 12.4 | 12.4 | |||||||||||||||||||||||||||||||||||||
Margaritaville Lease | 6.0 | 5.9 | 11.9 | 11.7 | |||||||||||||||||||||||||||||||||||||
Greektown Lease | 12.9 | 13.5 | 25.7 | 27.4 | |||||||||||||||||||||||||||||||||||||
Morgantown Lease | 0.7 | 0.7 | 1.5 | 1.5 | |||||||||||||||||||||||||||||||||||||
Total
(1) | $ | 231.8 | $ | 229.1 | $ | 461.1 | $ | 455.1 |
(dollars in millions) | 7/01/22 - 6/30/23 | 7/01/23 - 6/30/24 | 7/01/24 - 6/30/25 | 7/01/25 - 6/30/26 | 7/01/26 - 6/30/27 | Thereafter | Total | Fair Value | |||||||||||||||||||||||||||||||||||||||
Fixed rate | $ | — | $ | — | $ | — | $ | — | $ | 400.0 | $ | — | $ | 400.0 | $ | 350.0 | |||||||||||||||||||||||||||||||
Average interest rate | 5.625 | % | |||||||||||||||||||||||||||||||||||||||||||||
Fixed rate | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 400.0 | $ | 400.0 | $ | 305.0 | |||||||||||||||||||||||||||||||
Average interest rate | 4.125 | % | |||||||||||||||||||||||||||||||||||||||||||||
Fixed rate | $ | — | $ | — | $ | — | $ | 330.5 | $ | — | $ | — | $ | 330.5 | $ | 489.7 | |||||||||||||||||||||||||||||||
Average interest rate | 2.75 | % | |||||||||||||||||||||||||||||||||||||||||||||
Variable rate | $ | 37.5 | $ | 37.5 | $ | 37.5 | $ | 37.5 | $ | 450.0 | $ | 950.0 | $ | 1,550.0 | $ | 1,496.8 | |||||||||||||||||||||||||||||||
Average
interest rate (1) | 4.63 | % | 4.68 | % | 4.70 | % | 4.71 | % | 4.48 | % | 5.48 | % |
(dollars in millions, except for per share data) | Total Number of Shares Purchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Program (2) | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Program | ||||||||||||||||||||||
402 | $ | 42.42 | — | $ | 575.0 | |||||||||||||||||||||
1,895,830 | $ | 30.09 | 1,893,947 | $ | 518.0 | |||||||||||||||||||||
3,645,230 | $ | 30.19 | 3,645,230 | $ | 408.1 | |||||||||||||||||||||
Total | 5,541,462 | $ | 30.16 | 5,539,177 |
Exhibit | ||||||||
Number | Description of Exhibit | |||||||
3.1* | ||||||||
3.2* | ||||||||
10.1† | ||||||||
10.2 | ||||||||
10.3 | ||||||||
10.4 | ||||||||
10.5 | ||||||||
10.6 | ||||||||
10.7 | ||||||||
10.8 | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32.1** | ||||||||
32.2** | ||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104 | Cover Page Inline XBRL File (included in Exhibit 101) | |||||||
* | Filed herewith. | |||||||
** | Furnished herewith. | |||||||
† | Annexes, schedules and/or exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to furnish supplementally a copy of any omitted attachment to the SEC on a confidential basis upon request. |
PENN ENTERTAINMENT, INC. | |||||||||||
Dated: | August 4, 2022 | By: | /s/ Christine LaBombard | ||||||||
Christine LaBombard | |||||||||||
Senior Vice President and Chief Accounting Officer |
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
5/15/26 | ||||
2/15/26 | ||||
1/31/25 | ||||
5/1/24 | ||||
11/20/23 | ||||
11/1/23 | ||||
6/1/23 | ||||
5/1/23 | ||||
4/19/23 | ||||
2/1/23 | ||||
12/31/22 | ||||
11/1/22 | ||||
9/30/22 | ||||
Filed on: | 8/4/22 | 8-K | ||
8/3/22 | ||||
7/29/22 | ||||
7/8/22 | ||||
7/7/22 | ||||
For Period end: | 6/30/22 | |||
6/7/22 | 8-K, DEF 14A | |||
6/1/22 | DEFA14A | |||
5/31/22 | ||||
5/3/22 | ||||
5/1/22 | ||||
4/30/22 | ||||
4/1/22 | ||||
2/24/22 | ||||
2/23/22 | ||||
2/1/22 | SC 13G/A | |||
1/14/22 | ||||
1/11/22 | ||||
1/1/22 | 3 | |||
12/31/21 | 10-K | |||
12/22/21 | ||||
10/19/21 | 8-K, S-3ASR, S-8 | |||
10/1/21 | ||||
9/30/21 | 10-Q | |||
8/23/21 | ||||
8/12/21 | ||||
8/4/21 | 8-K | |||
8/1/21 | ||||
7/1/21 | 8-K | |||
6/30/21 | 10-Q | |||
6/17/21 | 8-K | |||
5/31/21 | ||||
5/11/21 | ||||
5/7/21 | ||||
4/1/21 | 4 | |||
3/31/21 | 10-Q | |||
3/5/21 | 4 | |||
2/22/21 | ||||
2/21/21 | ||||
1/31/21 | ||||
1/1/21 | 3 | |||
12/31/20 | 10-K, 5 | |||
10/1/20 | 8-K | |||
8/27/20 | ||||
4/16/20 | ||||
4/14/20 | 8-K | |||
2/20/20 | 4, 8-K | |||
10/15/18 | 8-K, 8-K/A, S-8 POS | |||
4/28/16 | 8-K | |||
6/24/15 | ||||
11/1/13 | 4, 8-K, SC 13D/A | |||
10/30/13 | 8-K | |||
List all Filings |
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 2/22/24 PENN Entertainment, Inc. 10-K 12/31/23 141:22M 6/16/23 PENN Entertainment, Inc. S-8 6/16/23 10:217K Broadridge Fin’l So… Inc 5/11/23 PENN Entertainment, Inc. S-3ASR 5/11/23 6:610K Toppan Merrill/FA 2/23/23 PENN Entertainment, Inc. 10-K 12/31/22 144:25M |
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 6/15/22 PENN Entertainment, Inc. S-8 6/15/22 10:305K 6/10/22 PENN Entertainment, Inc. 8-K:5,9 6/07/22 12:428K 5/05/22 PENN Entertainment, Inc. 10-Q 3/31/22 87:16M |