Penn National Gaming Inc. (NASDAQ:PENN) Q3 2019 Earnings Conference Call - Final Transcript

Oct 31, 2019 • 09:00 am ET


Penn National Gaming Inc. (NASDAQ:PENN) Q3 2019 Earnings Conference Call - Final Transcript


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Greetings and welcome to the Penn National Gaming Third Quarter Earnings Call. During the presentation all participants will be in a listen-only mode. Afterwards, we'll conduct a question-and-answer session. [Operator Instructions]

I would now like to turn the conference over to Mr. Joe Jaffoni, Investor Relations. Please go ahead.

Joe Jaffoni

Thank you, Kamika. And good morning, everyone, and thank you for joining Penn National Gaming's 2019 Third Quarter Conference Call. We'll get to management's presentation and comments momentarily as well as your questions and answers, but first I'll review the Safe Harbor disclosure.

In addition to historical facts or statements of current conditions, today's conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. These statements can be identified by the use of forward-looking terminologies, such as expects, believes, estimates, projects, intends, plans, seeks, may, will, should or anticipates or the negative or other variations of these or similar words or by discussions of future events, strategies or risks and uncertainties, including future plans, strategies, performance, developments, acquisitions, capital expenditures and operating results.

Such forward-looking statements reflect the company's current expectations and beliefs but are not guarantees of future performance. As such, actual results may vary materially from expectations. The risks and uncertainties associated with the forward-looking statements are described in today's news announcement and in the company's filings with the Securities and Exchange Commission, including the company's reports on Form 10-K and Form 10-Q. Penn National assumes no obligation to publicly update or revise any forward-looking statements.

Today's call and webcast will include non-GAAP financial measures within the meaning of SEC Regulation G, when required, a reconciliation of all non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP can be found in today's press release as well as on the company's website.

With that, it's now my pleasure to turn the call over to the Company's CEO, Tim Wilmott. Tim?

Timothy Wilmott

Thank you, Joe, and good morning, and welcome to our third quarter 2019 earnings call. After I provide my introductory comments, it will be followed by our Chief Operating Officer, Jay Snowden, and then our Chief Financial Officer, B.J. Fair to provide their respective comments and then we'll open up the call to questions.

First, I'd like to talk about our third quarter performance. We delivered EBITDAR of $407.9 million against guidance of $408.8 million. The $900,000 offset is primarily driven by the performance of our Plainridge Park license given the effect of heavy promotional spending we're seeing out of our new competitor in Boston. We had slightly less EBITDAR results out of Plainridge Park than we expected when we provide guidance. Other than that, we had a very solid third quarter. And in fact, if you look at our EBITDAR margins, we delivered a 100 basis point improvement year-over-year on our profit results.

I did want to highlight operationally and Jay is going to give more color after me that