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Penn National Gaming Inc. Message Board

  • dundarra dundarra Oct 26, 2004 3:35 PM Flag

    Missing the point?

    I think the market is sophisticated enough to understand that .02 from Pocono was backed out of this earnings report. I think most were expecting earnings to be .60 or above, not ".58" (adding Pocono back in). I know I was.

    Penn earned .60 last quarter. Compared to last quarter, revenues for CT were up 4.8%, and for Aurora were up 1.7%. Together these two properties contribute roughly 2/3 of Penn's profits. If everything else stayed the same, earnings should have been somewhat above .60. Granted, the hurricane depressed business somewhat at 3 of Penn's smaller properties, but several cents worth?

    When I get a chance, I'll compare Q3 to Q2 in more detail to try to see why we weren't at .60 or above.

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    • very simple to explain the shortfall from 2Q...

      Casino Rouge had EBITDA of $7.7MM vs. $9MM;

      Boomtown had EBITDA of $3.36MM vs. $3.83MM; and

      Bay St. Louis had EBITDA of $4.17MM vs. $5.95MM.

      Add them all up and the 3q EBITDA from these three southern casinos were about $1.8MM short. Adjust for taxes at 38%, and these three casinos caused nearly a 3 cent drop from the 2Q to the 3Q.

      • 1 Reply to finster63
      • Bay St Louis EBITDA, for example, was down 30% vs. Q2. I don't believe closing 3 days (weekdays, at that) for Hurricane Ivan accounts for a 30% drop.

        DeSanctis tried to explain the poor results during the conference call, making reference to a poor August: marketing into a weak calendar; "did the volumes but revenues werent there" (whatever that means), etc.; none of it made much sense. Then, hurricane in September "didn't help."

        My point is, earnings were a little light, good but not great. Southern casinos seem to be the culprit, but there's more to the situation there than one 3 day hurricane.

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