PENN Entertainment Reports Q1 2024 Results

TL;DR

<b>PENN Entertainment filed its Q1 2024 10-Q report, detailing financial performance and equity structure.</b>

AI Summary

PENN Entertainment, Inc. (PENN) filed a Quarterly Report (10-Q) with the SEC on May 2, 2024. PENN Entertainment reported financial results for the first quarter ended March 31, 2024. The filing details various equity components including preferred stock, common stock (exchangeable and non-exchangeable), treasury stock, additional paid-in capital, retained earnings, and accumulated other comprehensive income. Segment revenues for Casino and Food, Beverage, Hotel, and Other are provided for Q1 2024 and Q1 2023. The company's fiscal year ends on December 31st. The filing is a 10-Q, indicating a quarterly report.

Why It Matters

For investors and stakeholders tracking PENN Entertainment, Inc., this filing contains several important signals. This 10-Q filing provides a detailed look at PENN Entertainment's financial position and performance for the first quarter of 2024, offering insights into revenue streams and equity changes. Understanding the breakdown of equity and segment revenues is crucial for investors to assess the company's financial health and operational performance compared to the previous year.

Risk Assessment

Risk Level: low — PENN Entertainment, Inc. shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain significant new risks or material adverse events beyond typical business disclosures.

Analyst Insight

Review the segment revenue trends for Casino and Food, Beverage, Hotel, and Other to identify growth or decline patterns and compare them against industry benchmarks.

Revenue Breakdown

Key Numbers

• 2024-03-31 — Report Period End Date (Conformed period of report)
• 2024-05-02 — Filing Date (Filed as of date)
• 2024-01-01 — Q1 2024 Start Date (Reporting period for Q1 2024)
• 2023-03-31 — Q1 2023 End Date (Comparative period for Q1 2023)

Key Players & Entities

• PENN Entertainment, Inc. (company) — Filer name
• PENN NATIONAL GAMING INC (company) — Former company name
• PA (location) — State of incorporation
• WYOMISSING (location) — Business and mailing city
• 6103732400 (phone) — Business phone number

FAQ

Industry Context

PENN Entertainment operates in the hospitality and gaming industry, which is subject to regulatory oversight and economic conditions affecting consumer discretionary spending.

Regulatory Implications

The gaming industry is heavily regulated, with state and local authorities overseeing licensing, operations, and compliance for casino operators like PENN Entertainment.

What Investors Should Do

1. Analyze the year-over-year changes in segment revenues for Casino and Food, Beverage, Hotel, and Other.
2. Examine the detailed equity section to understand changes in preferred stock, common stock, and other equity accounts.
3. Compare the reported Q1 2024 results against analyst expectations and previous company guidance, if available.

Key Dates

• 2024-03-31: Quarterly Report End Date — Marks the end of the reporting period for the 10-Q.
• 2024-05-02: Filing Date — Date the 10-Q was officially submitted to the SEC.

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, providing the initial quarterly financial update.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value per share PENN The Nasdaq Sto

Filing Documents

• penn-20240331.htm (10-Q) — 1951KB
• pennex31103312024.htm (EX-31.1) — 10KB
• pennex31203312024.htm (EX-31.2) — 10KB
• pennex32103312024.htm (EX-32.1) — 5KB
• pennex32203312024.htm (EX-32.2) — 5KB
• 0000921738-24-000021.txt (&nbsp;) — 12433KB
• penn-20240331.xsd (EX-101.SCH) — 91KB
• penn-20240331_cal.xml (EX-101.CAL) — 121KB
• penn-20240331_def.xml (EX-101.DEF) — 551KB
• penn-20240331_lab.xml (EX-101.LAB) — 979KB
• penn-20240331_pre.xml (EX-101.PRE) — 774KB
• penn-20240331_htm.xml (XML) — 2109KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 1 Consolidated Balance Sheets - March 31, 2024 and December 31, 2023 2 Consolidated Statements of Operations - for the Three Months Ended March 31, 2024 and 2023 3 Consolidated Statements of Comprehensive Income (Loss) - for the Three Months Ended March 31, 2024 and 2023 4 Consolidated Statements of Changes in Stockholders' Equity - for the Three Months Ended March 31, 2024 and 2023 5 Consolidated Statements of Cash Flows - for the Three Months Ended March 31, 2024 and 2023 6 Notes to the Consolidated Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 37

Quantitative and Qualitative Disclosure About Market Risk

Item 3. Quantitative and Qualitative Disclosure About Market Risk 55

Controls and Procedures

Item 4. Controls and Procedures 55

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 56

Risk Factors

Item 1A. Risk Factors 56

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 56

Other Information

Item 5. Other Information 56

Exhibits

Item 6. Exhibits 57

Signatures

Signatures 58 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS 1 Table of Contents PENN ENTERTAINMENT, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in millions, except share and per share data) March 31, 2024 December 31, 2023 Assets Current assets Cash and cash equivalents $ 903.6 $ 1,071.8 Accounts receivable, net 282.3 319.0 Prepaid expenses 156.6 225.6 Other current assets 50.4 42.6 Total current assets 1,392.9 1,659.0 Property and equipment, net 3,467.4 3,514.0 Investment in and advances to unconsolidated affiliates 84.8 84.9 Goodwill 2,664.7 2,695.1 Other intangible assets, net 1,605.5 1,618.2 Operating lease right-of-use assets 4,189.3 4,264.7 Finance lease right-of-use assets 2,019.1 2,041.0 Other assets 190.7 187.3 Total assets $ 15,614.4 $ 16,064.2 Liabilities Current liabilities Accounts payable $ 38.2 $ 36.6 Current maturities of long-term debt 47.6 47.6 Current portion of financing obligations 41.9 41.3 Current portion of operating lease liabilities 307.4 302.3 Current portion of finance lease liabilities 37.4 40.3 Accrued expenses and other current liabilities 865.2 1,021.9 Total current liabilities 1,337.7 1,490.0 Long-term debt, net of current maturities, debt discount and debt issuance costs 2,718.1 2,718.0 Long-term portion of financing obligations 2,375.6 2,386.1 Long-term portion of operating lease liabilities 3,868.8 3,944.1 Long-term portion of finance lease liabilities 2,053.3 2,062.5 Deferred income taxes 44.8 117.6 Other long-term liabilities 144.1 146.3 Total liabilities 12,542.4 12,864.6 Commitments and contingencies (Note 1 1 ) Stockholders' equity Series B Preferred stock ($ 0.01 par value, 1,000,000 shares authorized, no shares issued and outstanding) — — Series C Preferred stock ($ 0.01 par value, 18,500 shares authorized, no shares issued and outstanding) — — Series D Preferred stock ($ 0.01 par value, 5,000 shares authorized, no shares issued and outstanding) — — Common stock ($ 0.01 par value, 400

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Note 1— Organization and Basis of Presentation Organization : PENN Entertainment, Inc., together with its subsidiaries ("PENN," the "Company," "we," "our," or "us"), is North America's leading provider of integrated entertainment, sports content, and casino gaming experiences. As of March 31, 2024, PENN operated 43 properties in 20 states, online sports betting in 19 jurisdictions and iCasino in five jurisdictions, under a portfolio of well-recognized brands including Hollywood Casino , L'Auberge , ESPN BET, and theScore BET Sportsbook and Casino . In August 2023, PENN entered into a transformative, exclusive long-term strategic alliance with ESPN, Inc. and ESPN Enterprises, Inc. (together, "ESPN") relating to online sports betting within the United States. PENN's ability to leverage the leading sports media brands in the United States (ESPN) and Canada (theScore) is central to our highly differentiated strategy to expand our footprint and efficiently grow our customer ecosystem. The Company's focus on organic cross-sell opportunities is reinforced by our market-leading retail casinos, sports media assets, and technology, including a proprietary state-of-the-art, fully integrated digital sports and iCasino betting platform and an in-house iCasino content studio. PENN's portfolio is further bolstered by our industry-leading PENN Play TM customer loyalty program, which offers our over 30 million members a unique set of rewards and experiences across business channels. The majority of the real estate assets (i.e., land and buildings) used in our operations are subject to triple net master leases; the most significant of which are with Gaming and Leisure Properties, Inc. (Nasdaq: GLPI) ("GLPI"), a real estate investment trust ("REIT"), and include the AR PENN Master Lease, 2023 Master Lease, and Pinnacle Master Lease (as such terms are defined in Note 8, "Leases" and collectively referred to as the "Master Leas

View Full Filing

View this 10-Q filing on SEC EDGAR