Penn National Gaming Updates Timing for Filing Restated Financial Statements
February 24 2016 - 5:35PM
Business Wire
Penn National Gaming, Inc. (PENN:Nasdaq) (“Penn National” or the
“Company”) today provided an update on the expected timing for the
filing with the Securities and Exchange Commission (“SEC”) of the
restatement of its financial statements filed since the spin-off
(the “Spin-off”) of its real estate assets to Gaming and Leisure
Properties, Inc. (“GLPI”) on November 1, 2013 (the
“Restatement”).
As noted in the Company’s February 4, 2016 fourth quarter
earnings release, the
Company plans to file its 2015 Annual Report on Form 10-K on
March 15, 2016, by which time the Company will also make the other
outstanding restatement filings. The brief extension will permit
the Company to ensure consistency throughout the reporting periods
for the various adjustments described in the Company’s February 4,
2016 fourth quarter earnings release, and to reclassify one
additional lease to capital lease treatment, which will result
in the Company reporting approximately $25 million
in additional debt on its balance sheet. As a
result, the Company now intends to submit all the restated filings
by March 15, 2016.
The Company’s cash flows for all prior and future periods are
not affected by the changes in accounting, nor will its current tax
treatment with respect to the Spin-off transaction. In addition,
the adjustments in the Restatement will not have a significant
impact on the Company’s leverage ratios under its senior credit
facility and other debt instruments (as the terms of those
obligations require the Master Lease to be treated as an operating
lease regardless of the treatment required under GAAP) and it will
have no future impact on the following indicators of the Company’s
performance:
- the Company’s cash position;
- the Company’s revenues from
continuing operations; or
- the Company’s rental payments or
other obligations under the Master Lease.
Penn National Gaming Chief Financial Officer, Saul Reibstein,
noted, “We thank the Company’s shareholders and lenders for their
patience during this process and we’re confident that the
additional time will ensure that there are no inconsistencies
throughout the reporting periods. As we move toward the conclusion
of the filing of the restated and 2015 financial results, our
operating and corporate teams remain focused on growth initiatives
in terms of enhancing current operations and profitably growing
market share in key markets, generating new operating efficiencies,
and the continuation of our expansion initiatives, all of which
position us for further financial growth in fiscal 2016.”
About Penn National Gaming
Penn National Gaming owns, operates or has ownership interests
in gaming and racing facilities and video gaming terminal
operations with a focus on slot machine entertainment. At December
31, 2015, the Company operated twenty-seven facilities in seventeen
jurisdictions, including Florida, Illinois, Indiana, Kansas, Maine,
Massachusetts, Maryland, Mississippi, Missouri, Nevada, New Jersey,
New Mexico, Ohio, Pennsylvania, Texas, West Virginia, and Ontario.
At December 31, 2015, in aggregate, Penn National Gaming operated
approximately 33,400 gaming machines, 800 table games and 4,600
hotel rooms.
Forward-looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements can be identified by the use of forward
looking terminology such as “expects,” “believes,” “estimates,”
“projects,” “intends,” “plans,” “seeks,” “may,” “will,” “should” or
“anticipates” or the negative or other variations of these or
similar words, or by discussions of future events, strategies or
risks and uncertainties, including future plans, strategies,
performance, developments, acquisitions, capital expenditures, and
operating results. Actual results may vary materially from
expectations. Although the Company believes that our expectations
are based on reasonable assumptions within the bounds of our
knowledge of our business, there can be no assurance that actual
results will not differ materially from our expectations.
Meaningful factors that could cause actual results to differ from
expectations include, but are not limited to, risks related to the
following, risks relating to the final impact of the restatement on
the Company’s financial statements; the impact of the restatement
on the Company’s evaluation of the effectiveness of its internal
control over financial reporting; delays in the preparation of the
financial statements; the risk that additional information will
come to light during the course of the preparation of restated
financial statements that alters the scope or magnitude of the
restatement; potential investigations, litigation or other
proceedings by governmental authorities, stockholders or other
parties; the risk that the Company will be unable to file its
financial statements in accordance with the timeline proposed in
this press release, which could give rise to a default under the
Company’s senior secured credit facility or under its note
indenture or have other detrimental consequences; the ability of
the Company to generate sufficient future taxable income to realize
its deferred tax assets; risks relating to our liquidity and
ability to raise capital; risks related to the impact on the
restatement on the Company’s reputation, development projects,
joint ventures and other commercial contracts; and other factors as
discussed in the Company’s Annual Report on Form 10-K for the year
ended December 31, 2014, subsequent Quarterly Reports on Form 10-Q
and Current Reports on Form 8-K, each as filed with the United
States Securities and Exchange Commission. The Company does not
intend to update publicly any forward-looking statements except as
required by law. In light of these risks, uncertainties and
assumptions, the forward-looking events discussed in this press
release may not occur.
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version on businesswire.com: http://www.businesswire.com/news/home/20160224006668/en/
Penn National Gaming, Inc.Saul V. Reibstein,
610-401-2049Chief Financial OfficerorJCIRJoseph N. Jaffoni /
Richard Land, 212-835-8500penn@jcir.com
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