Loading...
Docoh

PENN Entertainment (PENN)

With the nation's largest and most diversified regional gaming footprint, including 41 properties across 19 states, Penn National continues to evolve into a highly innovative omni-channel provider of retail and online gaming, live racing and sports betting entertainment. The Company's properties feature approximately 50,000 gaming machines, 1,300 table games and 8,800 hotel rooms, and operate under various well-known brands, including Hollywood, Ameristar, and L'Auberge. Its wholly-owned interactive division, Penn Interactive, operates retail sports betting across the Company's portfolio, as well online social casino, bingo, and iCasino products. In February 2020, Penn National entered into a strategic partnership with Barstool Sports, whereby Barstool is exclusively promoting the Company's land-based and online casinos and sports betting products, including the Barstool Sportsbook mobile app, to its national audience. The Company's omni-channel approach is bolstered by the mychoice loyalty program, which rewards and recognizes its over 20 million members for their loyalty to both retail and online gaming and sports betting products with the most dynamic set of offers, experiences, and service levels in the industry.

Company profile

Ticker
PENN
Exchange
CEO
Jay A. Snowden
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
Former names
PENN NATIONAL GAMING INC
SEC CIK
Subsidiaries
Abradoodle, LLC • Absolute Games, LLC • Alton Casino, LLC • Ameristar Casino Black Hawk, LLC • Ameristar Casino Council Bluffs, LLC • Ameristar Casino East Chicago, LLC • Ameristar East Chicago Holdings, LLC • Ameristar Interactive, LLC • Ameristar Lake Charles Holdings, LLC • Argosy Development, LLC ...
IRS number
232234473

PENN stock data

Calendar

4 Aug 22
20 Aug 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 1.72B 1.72B 1.72B 1.72B 1.72B 1.72B
Cash burn (monthly) 33.47M 47.48M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 56.42M 80.06M n/a n/a n/a n/a
Cash remaining 1.67B 1.64B n/a n/a n/a n/a
Runway (months of cash) 49.9 34.6 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
15 Aug 22 Saul Reibstein Common Stock Sell Dispose S No No 38.03 5,086 193.42K 34,663
15 Aug 22 Saul Reibstein Common Stock Option exercise Acquire M No No 12.87 5,086 65.46K 39,749
15 Aug 22 Saul Reibstein Stock Options Common Stock Option exercise Dispose M No No 12.87 5,086 65.46K 39,457
28 Mar 22 Saul Reibstein Common Stock Sale back to company Dispose D No No 41.52 2,383 98.94K 34,663
28 Mar 22 Saul Reibstein Common Stock Option exercise Acquire M No No 0 2,383 0 37,046
28 Mar 22 Saul Reibstein Phantom Stock Units Common Stock Option exercise Dispose M No No 0 2,383 0 0
9 Mar 22 Jay A Snowden Common Stock Grant Acquire A No No 0 6,483 0 530,565
9 Mar 22 Jay A Snowden Common Stock Payment of exercise Dispose F No No 41.75 28,472 1.19M 523,722
9 Mar 22 Jay A Snowden Common Stock Grant Acquire A No No 0 21,698 0 552,194
9 Mar 22 Jay A Snowden Common Stock Sale back to company Dispose D No No 41.75 21,698 905.89K 530,496
82.5% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 478 545 -12.3%
Opened positions 55 76 -27.6%
Closed positions 122 99 +23.2%
Increased positions 159 181 -12.2%
Reduced positions 159 173 -8.1%
13F shares Current Prev Q Change
Total value 4.02B 5.55B -27.5%
Total shares 130.83M 130.12M +0.5%
Total puts 4.6M 5.93M -22.4%
Total calls 3.37M 6.23M -46.0%
Total put/call ratio 1.4 1.0 +43.6%
Largest owners Shares Value Change
FMR 20.83M $633.53M +7.2%
Vanguard 17.8M $541.54M -0.3%
BLK Blackrock 11.14M $338.83M -30.0%
Bamco 8.69M $264.48M -18.1%
IVZ Invesco 7.84M $238.63M -11.4%
STT State Street 5.23M $159.24M -3.7%
HG Vora Capital Management 3.5M $106.47M NEW
Geode Capital Management 3.4M $103.42M +4.1%
BAC Bank Of America 2.54M $77.36M +0.7%
Contrarius Investment Management 2.49M $75.78M NEW
Largest transactions Shares Bought/sold Change
BLK Blackrock 11.14M -4.78M -30.0%
HG Vora Capital Management 3.5M +3.5M NEW
Contrarius Investment Management 2.49M +2.49M NEW
BNS Bank Of Nova Scotia 2.17M +2.17M NEW
Bamco 8.69M -1.92M -18.1%
GS Goldman Sachs 375.55K -1.64M -81.4%
FMR 20.83M +1.4M +7.2%
BK Bank Of New York Mellon 2.34M +1.35M +136.2%
Long Pond Capital 1.28M +1.28M NEW
Parsifal Capital Management 91.8K -1.13M -92.5%

Financial report summary

?
Risks
  • The COVID-19 pandemic has significantly impacted the global economy, including the gaming industry, and has had a material adverse effect on our business, financial condition, results of operations, and cash flows, and may continue to do so.
  • Intense competition exists in the gaming, media, and entertainment industries, and we expect competition to continue to intensify.
  • Our business is sensitive to reductions in discretionary consumer spending as a result of downturns in the economy and other factors outside of our control.
  • Our results of operations may fluctuate due to seasonality and other factors and, therefore, our periodic operating results will not be guarantees of future performance.
  • Negative events or negative media coverage including relating to, or a declining popularity of, sports betting, the underlying sports, teams or athletes and related talent, online gaming may adversely impact our reputation, which could have an adverse impact on our business.
  • Our projections are subject to significant risks, assumptions, estimates and uncertainties, including assumptions regarding future legislation and changes in regulations, both inside and outside of the United States. As a result, our projected revenues and profitability may differ materially from our expectations.
  • Consolidation among gaming equipment manufacturers, or supply chain delays, could impose additional costs on us.
  • We have certain land-based properties that generate a significant percentage of our revenues and our ability to meet our operating and debt service requirements is dependent, in part, upon the continued success of these properties.
  • We are required to utilize a significant portion of our cash flow from operations to make our rent payments under our Triple Net Leases, which could adversely affect our ability to fund our operations and growth and limit our ability to react to competitive and economic changes.
  • Most of our facilities are leased and could experience risks associated with leased property.
  • Our operations could be disrupted if management agreements and/or leases with third parties and local governments are not renewed.
  • There can be no assurance that we will be able to compete effectively or generate sufficient returns on our recently expanded sports betting operations, our recent acquisition of theScore and our investment in Barstool Sports.
  • Our operations and the success are largely dependent on the skill and experience of management and key personnel.
  • Our business could suffer if we cannot attract and retain talented team members.
  • Collective bargaining activity and strikes could disrupt our operations, increase our labor costs, and interfere with the ability of our management to focus on executing our business strategies.
  • If we fail to detect fraud or theft, including by our users and employees, our reputation may suffer which could harm our brand and reputation and negatively impact our business, financial condition and results of operations and can subject us to investigations and litigation.
  • We rely on, among other things, copyrights, trademarks, trade secrets, confidentiality procedures and contractual provisions to protect our intellectual property rights and we may be unable to protect or may not be successful in protecting our intellectual property rights.
  • Our commercial success depends upon us avoiding the infringement of intellectual property rights owned by others and any such infringements, including those that are inadvertent, may have a material adverse effect on our business.
  • Our technology contains third-party open source software components, and failure to comply with the terms of the underlying open source software licenses could restrict our ability to provide our offerings.
  • We may face disruption and other difficulties in integrating and managing acquired operations or other initiatives we have recently acquired, may develop, or may acquire in the future.
  • Our retail casino gaming, online gaming, and sports betting rely heavily on technology services and an uninterrupted supply of electrical power.
  • We rely on third-party payment processors to process deposits and withdrawals made by our users, and if we cannot manage our relationships with such third parties and other payment-related risks, our business, financial condition and results of operations could be adversely affected.
  • If our third-party mobile application distribution platforms or service providers do not perform adequately or terminate their relationships with us, our costs may increase and our business, financial condition, and results of operations could be adversely affected.
  • If Internet and other technology-based service providers experience service interruptions, our ability to conduct our business may be impaired and our business, financial condition and results of operations could be adversely affected.
  • We rely on third party cloud infrastructure services to deliver our offerings to users, and any disruption of or interference with our use of these services could adversely affect our business, financial condition, results of operations and prospects.
  • We rely on strategic relationships with casinos, tribes and horse-tracks in order to be able to offer our sports betting, and online gaming products in certain jurisdictions. If we cannot establish and manage such relationships with such partners, our business, financial condition and results of operations could be adversely affected.
  • We rely on other third-party sports data providers for real-time and accurate data for sporting events, and if such third parties do not perform adequately or terminate their relationships with us, our costs may increase and our business, financial condition and results of operations could be adversely affected.
  • Our growth will depend, in part, on the success of our strategic relationships with third parties. Overreliance on certain third parties, or our inability to extend existing relationships or agree to new relationships may cause unanticipated costs for us and impact our financial performance in the future.
  • Our information technology and other systems are subject to cyber security risk, including misappropriation of employee information, customer information or other breaches of information security, particularly as our Interactive segment grows.
  • Our growth prospects may suffer if we are unable to develop successful offerings or if we fail to pursue additional offerings. In addition, if we fail to make the right investment decisions in our offerings and technology, we may not attract and retain key users and our revenue and results of operations may decline.
  • The growth of our Interactive segment will depend on our ability to attract and retain users.
  • Participation in the sports betting industry exposes us to trading, liability management and pricing risk. We may experience lower than expected profitability and potentially significant losses as a result of a failure to determine accurately the odds in relation to any particular event and/or any failure of its sports risk management processes.
  • We follow the industry practice of restricting and managing betting limits at the individual customer level based on individual customer profiles and risk level to the enterprise; however there is no guarantee that states will allow operators such as us to place limits at the individual customer level.
  • We extend credit to a portion of our customers, and we may not be able to collect gaming receivables from our credit customers.
  • The success, including win or hold rates, of existing or future sports betting and online gaming products depends on a variety of factors and is not completely controlled by us.
  • We face a number of challenges prior to opening new or upgraded gaming properties or launching new online gaming or sports betting channels, which may lead to increased costs and delays in anticipated revenues.
  • Our indebtedness could adversely affect our financial health and prevent us from fulfilling our obligations under our outstanding indebtedness.
  • The lack of availability and cost of financing could have an adverse effect on our business.
  • To service our indebtedness, we will require a significant amount of cash, which depends on many factors beyond our control.
  • We are or may become involved in legal proceedings that, if adversely adjudicated or settled, could impact our financial condition and results of operations.
  • We face extensive regulation from gaming authorities, which could have a material adverse effect on us.
  • We are subject to certain federal, state and other regulations, and if we fail to comply with such regulations, it could have a material adverse effect on our financial condition, results of operations, and cash flow.
  • State and local smoking restrictions have and may continue to negatively affect our business.
  • Changes to consumer privacy laws could adversely affect our ability to market our products effectively and may require us to change our business practices or expend significant amounts on compliance with such laws.
  • We are subject to environmental laws and potential exposure to environmental liabilities which could have an adverse effect on us.
  • In the event we make another acquisition, we may face risks related to our ability to receive regulatory approvals required to complete, or other delays or impediments to completing, such acquisition.
  • Material increases to our taxes or the adoption of new taxes or the authorization of new or increased forms of gaming could have a material adverse effect on our future financial results.
Management Discussion
  • ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  • On August 4, 2022, Penn National Gaming, Inc. was renamed 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. A member of the S&P 500®, PENN operates 44 properties in 20 states, online sports betting in 13 jurisdictions and iCasino in five, under a portfolio of well-recognized brands including Hollywood Casino®, L'Auberge®, Barstool Sportsbook®, and theScore Bet®. PENN’s highly differentiated strategy, which is focused on organic cross-sell opportunities, is reinforced by its investments in owned technology, including a state-of-the-art media and betting platform and an in-house iCasino content studio. The Company’s portfolio is further bolstered by its industry-leading mychoice® customer loyalty program (the “mychoice program”), which offers its over 26 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 the PENN Master Lease and the Pinnacle Master Lease (as such terms are defined in “Liquidity and Capital Resources” and collectively referred to as the “Master Leases”), with Gaming and Leisure Properties, Inc. (Nasdaq: GLPI) (“GLPI”), a real estate investment trust (“REIT”).

Content analysis

?
Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. senior Avg
New words: Ameristar, Bill, bore, carryback, Chicago, East, enactment, exempt, forfeited, negotiated, Northern, refund, registration, renamed, retirement, slightly, stockholder, sustained, thirteen, withheld, worldwide
Removed: achievable, Carlo, Chief, classify, conduct, data, declining, developed, division, federal, foregoing, guaranteed, issuing, LuckyPoint, Monte, premium, President, receiving, reimbursement, relationship, segregated, simulation