Penn National Gaming
Transcript of Penn National Gaming
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Penn National Gaming
Tim Wilmott, President & COO
East Coast Gaming Congress - May 24, 2011
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Who is Penn National Gaming?
• Largest publicly traded regional gaming operator in the U.S., featuring a $3 billion market cap and $2.5 billion in annual revenues
• Largest pari-mutuel wagering operator in the U.S.
• Named 100 fastest growing companies in the
country a record 6 out of 7 years
• 25 facilities in 17 jurisdictions across North America
• Approximately 15,000 employees companywide
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Black Gold Casino atZia Park
Argosy Casino Sioux City
Hollywood Casino Aurora
Empress Casino Hotel
Argosy Casino Alton
Hollywood Casino Bay St. Louis
Hollywood Casino Baton Rouge
Boomtown Biloxi
Sanford Orlando Kennel Club
Charles Town Races & SlotsHollywood
Casino Lawrenceburg
Raceway Park
Casino Rama
(CANADA)
Hollywood Casino at Penn National Race Course
Freehold Raceway
Hollywood Slots Hotel and Raceway
Argosy Casino Riverside
Hollywood Casino Tunica
Bullwhackers
Leading Regionally Diversified Gaming Company
23 facilities across 16 jurisdictions
Laurel Park &Pimlico Race Course
Beulah ParkHollywood Casino Perryville
M Resort
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1Q11 Financial Results
Gaming $543.4 $609.1 12.1%
Food, Bev and Other 80.4 85.3 6.0%
Mgmt Service Fee 3.2 3.3 3.1%
(Promotional Allowances) (34.7) (30.7) (11.5%)
Net Revenues $592.3 $667.0 12.6%
Adj. EBITDA $148.8 $178.0 19.6%
Adj. EBITDA Margin 25.1% 26.7% 1.6%
1Q 2011($ in millions)
1Q 2010 Y-o-Y ∆
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Initial Returns from Recent Expansions & Openings
Capital Amount GGR Tax DateProject/Scope Spend Spent (3/31/11) Rate (2) Opened
Hollywood Casino at Charles TownTable Games and F&B additions $40 $29.2 35% 7/2/10
• Revenue Growth of 20.6%• EBITDA Growth of 34.9%
Hollywood Casino at Penn NationalTable Games $25 $24.5 16% 7/18/10
• Revenue Growth of 10.1%• EBITDA Growth of 40.8%
Hollywood Casino PerryvilleNew Slot Facility – Cecil County, MD $94 $88.8 67% 9/27/10
• Revenue of $56.9 million and EBITDA excluding pre-opening expenses of $8.8 million in six months since opening
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Fully Financed Development Pipeline
Hollywood Casino (JV)Full Casino – Wyandotte County, KS $155 $44.9 0.6M 27% Q1 12
Hollywood CasinoFull Casino – Toledo, OH $300 $41.8 1.0M 33% 1H 12
Hollywood Casino Full Casino – Columbus, OH $400 $45.2 1.8M 33% Q4 12
Planned Capital Capital Spent Gaming Age GGR TaxProject/Scope Spend (3/31/11) Population Rate Opening
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M Resort Las Vegas
Acquired outstanding debt in October 2010 for $230.5
million
Property features:
Opened in March 2009
Sits on 90 acres approximately 10 miles south of the Las
Vegas Strip
1,900 slots, 64 tables, 14 poker tables, race & sports
book
390 hotel rooms
Nevada regulatory approval received in May
June 1, M Resort will become Penn’s 18th casino property
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M Resort Las Vegas
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Hollywood Casino Wyandotte
$411M Investment
50/50 joint venture with International Speedway Corporation
2,000 gaming machines and 64 table games
82,000 sq. ft. gaming facility plus 42,000 sq. ft. for food and entertainment
Located adjacent to Turn 2 at the Kansas Speedway
Opening 1Q 2012
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Hollywood Casino Wyandotte - Kansas
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Hollywood Casino at Kansas Speedway
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Hollywood Casino at Kansas Speedway Construction Progress
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Ohio
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Hollywood Casino Toledo Project Stats
Size
290,000 SF Casino
2,000 Slot Machines, 60 Game Tables, 20 Table Poker Room
Multiple Restaurants
860,000 SF Parking Garage
5 Levels, 3,000 + Vehicles
Cost & Schedule
Project Cost = $250 M
$50 million license fee
August 2010 groundbreaking
1st half 2012 anticipated opening
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Toledo Site
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Hollywood Casino Toledo
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Progress – April 2011
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Progress – April 2011
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19
$400 million investment
114 acre site, featuring approximately 300,000 sq. ft. casino and structured parking
$20 million already spent on remediation 3,000 slot machines, approx 70 table games, 30 poker
tables in Phase I Dining and entertainment:
Steakhouse Entertainment Lounge Buffet Sports Pub
Hollywood Casino Columbus
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Hollywood Casino Columbus
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Columbus Site Plan
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Hollywood Casino Columbus
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Diversifying and Growing the Operating Base
Employee Tables Hotel ParkingCount Slots Games Rooms Spaces
Existing Total (3/31/11) 15,000 27,065 533 2,032 37,332
Hollywood Casino (50% JV)Wyandotte County, KS 1,000 2,000 64 - 2,800
Hollywood CasinoToledo, OH 1,200 2,000 80 - 4,000
Hollywood CasinoColumbus, OH 2,000 3,000 100 - 4,500
Total New Properties 5,700 8,900 322 390 16,000
GROWTH +38% +32.9% +60.4% 19.2% +42.9%
M ResortLas Vegas, NV 1,500 1,900 78 390 4,700
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Expansion States
Texas
Closed on 50/50 JV ownership of Sam Houston Race Park in Houston and two other TX tracks in April 2011
Represents option on the potential for legalization of gaming at tracks throughout the state
Massachusetts
Nearly approved gaming legislation in last year’s session
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Tim’s Wish List…