Penn National Gaming First Quarter Revenue Rises 8.4% to $798.2 Million and Adjusted EBITDA Increase

Penn National Gaming First Quarter Revenue Rises 8.4% to $798.2 Million and Adjusted EBITDA Increases 10% to $220.7 Million

- Establishes 2013 Second Quarter Guidance and Updates 2013 Full Year Guidance -


WYOMISSING, Penn.--(BUSINESS WIRE)-- Penn National Gaming, Inc. (PENN: Nasdaq):

Conference Call:

Today, April 18, 2013 at 11:00 a.m. ET

Dial-in number:

212/231-2930

Webcast:

www.pngaming.com

Replay information provided below

Penn National Gaming, Inc. (PENN: Nasdaq) today reported first quarter operating results for the three months ended March 31, 2013, as summarized below:

Summary of First Quarter Results

(in millions, except per share data)

Three Months Ended
March 31,

2013 Actual

2013 Guidance
(2)

2012 Actual

Net revenues

$

798.2

$

799.2

$

736.1

Adjusted EBITDA (1)

220.7

224.2

200.7

Less: Impact of stock compensation, insurance recoveries
and deductible charges, depreciation and amortization, gain/loss on
disposal of assets, interest expense - net, income taxes, and other
expenses

(155.4

)

(155.9

)

(122.1

)

Net income

$

65.3

$

68.3

$

78.6

Diluted earnings per common share

$

0.63

$

0.64

$

0.74

(1)

Adjusted EBITDA is income (loss) from operations, excluding the impact of stock compensation, insurance recoveries and deductible charges, depreciation and amortization, and gain or loss on disposal of assets, and is inclusive of gain or loss from unconsolidated affiliates. A reconciliation of net income (loss) per accounting principles generally accepted in the United States of America ("GAAP") to adjusted EBITDA, as well as income (loss) from operations per GAAP to adjusted EBITDA, is included in the accompanying financial schedules.

(2)

The figures in this column present the guidance Penn National provided on January 31, 2013 for the three months ended March 31, 2013.

Review of First Quarter 2013 Results vs. Guidance and First Quarter 2012 Results

Three Months

Ended

March 31, 2013

Pre-tax

After-tax

(in thousands)

Income, per guidance (1)

$

111,978

$

68,306

East/West segment variance

1,985

1,216

Southern Plains segment variance

1,944

1,191

Midwest and Other segment variance

343

210

Spin-off transaction costs

(2,335

)

(1,398

)

Development costs

(1,916

)

(1,147

)

Liability based stock compensation charges

(3,436

)

(2,057

)

Loss on disposals

(2,324

)

(2,324

)

Other (2)

1,799

1,090

Tax rate variance from guidance

-

184

Income, as reported

$

108,038

$

65,271

Three Months Ended

March 31,

2013

2013 Guidance (1)

2012

Diluted earnings per common share

$

0.63

$

0.64

$

0.74

Spin-off transaction costs

0.01

-

-

Development costs

0.01

-

-

Liability based stock compensation charges

0.02

-

-

Loss on disposals

0.02

-

-

Other

-

-

0.01

Share count variance (3)

-

0.02

-

Gain on Hollywood Casino Tunica flood claim

-

-

(0.02