- Closes Acquisition of Pinnacle
Entertainment's (NASDAQ:PNK) Real Estate Assets for $4.8 billion
-- Establishes 2016 Third Quarter Guidance and
Revises Full Year Guidance -- Declares 2016 Third
Quarter Dividend of $0.60 per Common Share -
Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) (the
“Company”), the first gaming-focused REIT in North America, today
announced results for the quarter ended June 30, 2016.
Financial Highlights
|
|
Three Months Ended June
30, |
(in millions, except per share data) |
|
2016 Actual |
|
2016 Guidance (1) |
|
2015 Actual |
Net
Revenue |
|
$ |
207.4 |
|
|
$ |
211.3 |
|
|
$ |
149.9 |
|
Net
Income |
|
$ |
73.3 |
|
|
$ |
69.7 |
|
|
$ |
32.0 |
|
Funds From
Operations (2) |
|
$ |
96.9 |
|
|
$ |
93.3 |
|
|
$ |
56.0 |
|
Adjusted Funds
From Operations (3) |
|
$ |
135.1 |
|
|
$ |
133.5 |
|
|
$ |
79.0 |
|
Adjusted EBITDA
(4) |
|
$ |
180.4 |
|
|
$ |
180.3 |
|
|
$ |
108.6 |
|
|
|
|
|
|
|
|
Net income, per
diluted common share |
|
$ |
0.39 |
|
|
$ |
0.38 |
|
|
$ |
0.27 |
|
|
|
|
|
|
|
|
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(1) The guidance figures in the tables above present the
guidance provided on April 26, 2016, for the three months ended
June 30, 2016.
(2) Funds from operations (“FFO”) is net income, excluding
(gains) or losses from sales of property and real estate
depreciation as defined by NAREIT.
(3) Adjusted funds from operations (“AFFO”) is FFO,
excluding stock based compensation expense, debt issuance costs
amortization, other depreciation, amortization of land rights,
straight-line rent adjustments and direct financing lease
adjustments, reduced by capital maintenance expenditures.
(4) Adjusted EBITDA is net income excluding interest,
taxes on income, depreciation, (gains) or losses from sales of
property, stock based compensation expense, straight-line rent
adjustments, direct financing lease adjustments and the
amortization of land rights.
Gaming and Leisure Properties, Inc. Chief
Executive Officer, Peter M. Carlino commented, “With the completion
of the Pinnacle Entertainment acquisition, we are more diversified
by both tenant and geography, strengthening our already stable cash
flow profile and enhancing our position as a leader within the
triple-net REIT industry. We expect to close the Meadows Racetrack
and Casino (“the Meadows”) transaction in September. Funding
for this transaction will come from a combination of cash on hand,
equity, and revolver proceeds. We expect to raise at least $168.0
million from the ATM over the course of several months which will
result in the Meadows transaction leverage of 5.5 times and
anticipated total Company leverage of 5.3 times on a pro forma
basis by the end of the year. Further reductions in leverage, which
will happen with undistributed earnings, will allow us to
finance (small to moderate sized) future acquisitions without
equity capital markets volatility concerns and increase the size of
cash transactions we could prudently undertake. Additionally, our
portfolio continues to perform well given our increased scale and
we believe that we are well positioned in our assets throughout
market cycles. Looking ahead, we will continue to utilize our
deep industry knowledge and strong balance sheet to pursue
additional accretive acquisitions that will further increase our
portfolio quality and scale while growing our AFFO and dividend for
our shareholders.”
The Company’s second quarter 2016 net income and
FFO as compared to its guidance were impacted by the following:
- Income from rental activities was unfavorable to guidance by
$1.0 million as Penn National Gaming, Inc.'s (NASDAQ:PENN)
Hollywood Casino Columbus and Hollywood Casino Toledo
underperformed by $1.0 million;
- Favorable adjustments to guidance of $2.8 million, due to
finalization of PNK accounting treatment;
- Corporate expenses were approximately $0.9 million less than
guidance primarily due to lower than anticipated legal expenses for
potential acquisitions;
- Interest, net was favorable to guidance by $0.9 million
primarily due to lower than anticipated interest as a result of the
PNK transaction.
In addition, AFFO was impacted by $0.4 million
of favorable capital maintenance expenditures for the quarter as
compared to guidance.
Portfolio Update
GLPI owns approximately 4,195 acres of land and 14.7 million
square feet of building space, which was 100% occupied as of
June 30, 2016. At the end of the second quarter of 2016, the
Company owned the real estate associated with 35 casino facilities
and leases 18 of these facilities to PENN, 14 of these facilities
to PNK and one to Casino Queen in East St. Louis, Illinois.
Two of the gaming facilities, located in Baton Rouge, Louisiana and
Perryville, Maryland, are owned and operated by a subsidiary of
GLPI (GLP Holdings, Inc.) (the “TRS properties”).
Capital maintenance expenditures at the TRS properties were $0.8
million for the three months ended June 30, 2016.
Financing Update
We completed an offering of 28.75 million shares at $30.00 which
was very well received in the market as the offering was upsized
from 19.0 million shares. The price was a 0.3% premium to the
file offer price. We had over 170 institutional investors
interested in the offer, including four of the top ten REIT
dedicated funds as well as significant support from existing
shareholders. Additionally, we initiated a successful bond
offering, which settled on April 28, 2016, with two tranches; 2021
maturity of $400.0 million at 4.375% and 2026 maturity of $975.0
million at 5.375%. We are hopeful that this is the beginning
of more REIT dedicated funds finding our company to be a safe,
secure and compelling investment. With the equity offering we
are expecting to be approximately under 5.3 times leveraged on a
pro forma basis by the end of 2016.
On August 9, 2016, the Company commenced a continuous equity
offering under which the Company may sell up to an aggregate of
$400 million of its common stock from time to time through a sales
agent in “at the market” offerings (the “ATM Program”). Actual
sales will depend on a variety of factors, including market
conditions, the trading price of the Company's common stock and
determinations of the appropriate sources of funding for proposed
transactions. The Company may sell the shares in amounts and at
times to be determined by the Company, but has no obligation to
sell any of the shares in the ATM Program. The ATM Program also
allows the Company to enter into forward sale agreements. In no
event will the aggregate number of shares sold under the ATM
Program (whether under any forward sale agreement or through a
sales agent), have an aggregate sales price in excess of $400
million.
Balance Sheet Update
The Company had $23.7 million of unrestricted cash on hand and
$4.5 billion in total debt, including $1,125.0 million of debt
outstanding under its unsecured credit facility term loans and
$20.0 million outstanding under its unsecured credit facility
revolver at June 30, 2016. The Company’s debt structure
at June 30, 2016 was as follows:
|
|
As of June 30, 2016 |
|
|
Interest Rate |
|
Balance |
|
|
|
|
(in thousands) |
Unsecured Term Loan A
(1) |
|
2.382 |
% |
|
$ |
300,000 |
|
Unsecured Term Loan A-1
(1) |
|
2.210 |
% |
|
825,000 |
|
Unsecured $700 Million
Revolver (1) |
|
2.192 |
% |
|
20,000 |
|
Senior Unsecured Notes
Due 2018 |
|
4.375 |
% |
|
550,000 |
|
Senior Unsecured Notes
Due 2020 |
|
4.875 |
% |
|
1,000,000 |
|
Senior Unsecured Notes
Due 2021 |
|
4.375 |
% |
|
400,000 |
|
Senior Unsecured Notes
Due 2023 |
|
5.375 |
% |
|
500,000 |
|
Senior Unsecured Notes
Due 2026 |
|
5.375 |
% |
|
975,000 |
|
Capital Lease |
|
4.780 |
% |
|
1,339 |
|
Total long-term
debt |
|
|
|
4,571,339 |
|
Less: unamortized debt
issuance costs |
|
|
|
(57,887 |
) |
Total long-term debt,
net of unamortized debt issuance costs |
|
|
|
4,513,452 |
|
Less: current
maturities of long-term debt |
|
|
|
(105 |
) |
Long-term debt, net of
unamortized debt issuance costs and current maturities |
|
|
|
$ |
4,513,347 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The margin on the term loan facilities and revolver is
Libor plus 1.75%. The Company's revolver and $300.0 million term
loan credit facility mature on October 28, 2018 and the incremental
term loan of $825.0 million matures on April 28, 2021.
Dividends
On April 25, 2016, the Company’s Board of Directors
declared the second quarter dividend. Shareholders of record
on June 2, 2016 received $0.56 per common share, which was
paid on June 17, 2016. On August 3, 2016, the
Company declared its third quarter 2016 dividend of $0.60 per
common share, payable on September 23, 2016 to shareholders of
record on September 12, 2016.
Guidance
The table below sets forth current guidance targets for
financial results for the 2016 third quarter and full year, based
on the following assumptions:
- Reflects the acquisition of PNK's real estate assets, which
closed on April 28, 2016 and the final accounting for the PNK
direct financing lease;
- Excludes any impact of the acquisition of the Meadows, which
was announced on December 16, 2015 and PNK was selected as the
operator as announced on March 29, 2016;
- Reported rental income of approximately $680.9 million for the
year and $199.3 million for the third quarter, consisting of:
|
|
|
|
|
(in millions) |
|
Third Quarter |
|
Full Year |
Cash Rental
Receipts |
|
|
|
|
PENN |
|
$ |
110.4 |
|
|
$ |
442.8 |
|
PNK |
|
$ |
95.0 |
|
|
$ |
256.2 |
|
Casino Queen |
|
$ |
3.6 |
|
|
$ |
14.2 |
|
PENN non-assigned land
lease |
|
$ |
(0.8 |
) |
|
$ |
(3.1 |
) |
Total Cash
Rental Receipts |
|
$ |
208.2 |
|
|
$ |
710.1 |
|
|
|
|
|
|
Non-Cash
Adjustments |
|
|
|
|
PENN straight-line
rent |
|
$ |
(14.0 |
) |
|
$ |
(55.8 |
) |
PNK direct financing
lease |
|
$ |
(18.0 |
) |
|
$ |
(48.5 |
) |
Property taxes paid by
tenants |
|
$ |
20.9 |
|
|
$ |
69.1 |
|
PNK land lease paid by
tenant |
|
$ |
2.2 |
|
|
$ |
6.0 |
|
Total Rent as
Reported |
|
$ |
199.3 |
|
|
$ |
680.9 |
|
|
|
|
|
|
|
|
|
|
- Cash rent includes incremental escalator on the PENN building
rent component effective November 1, 2015, which increases 2016
annual rent by $4.2 million;
- TRS EBITDA of approximately $35.4 million for the year and $8.2
million for the third quarter with capital maintenance expenditures
of approximately $3.9 million for the year and $1.3 million for the
third quarter;
- Capital project expenditures of approximately $0.3 million for
the year and $0.0 million for the third quarter;
- Blended income tax rate at the TRS entities of 40%;
- LIBOR is based on the forward yield curve;
- Real estate depreciation of approximately $94.6 million for the
year and $23.6 million in the third quarter;
- Non-real estate depreciation of approximately $13.3 million for
the year and $3.3 million in the third quarter;
- Expense related to acquired PNK land lease rights of
approximately $6.2 million for the year and $2.3 million in the
third quarter;
- Equity-related employee compensation affecting EBITDA includes
the following:
- Expense of approximately $1.6 million for the year and $0.4
million for the third quarter related to cash-settled equity
compensation awards issued pre-spin, which will be fully vested by
the first quarter of 2017;
- Expense of approximately $4.5 million for the year and $0.3
million for the third quarter for payments in lieu of dividends on
vested stock options issued pre-spin, which will conclude with the
September dividend;
- Equity-related employee compensation that does not affect
EBITDA includes non-cash expense of approximately $18.4 million for
the year and $4.6 million for the third quarter for restricted
stock awards;
- Interest expense includes approximately $11.6 million for the
year and $3.3 million for the third quarter of debt issuance costs
amortization for existing debt and $3.5 million for the year and
$0.0 million for the third quarter for amortization of fees for the
bridge loan related to the PNK transaction;
- For the purpose of the dividend calculation, AFFO is reduced by
approximately $4.9 million for the full year and $1.1 million for
the third quarter prior to calculation of the dividend to account
for dividends on shares that will be outstanding after options held
by employees are exercised;
- The basic share count is approximately 178.3 million shares for
the year and 205.5 million shares for the third quarter and the
fully diluted share count is approximately 180.4 million shares for
the year and 207.6 million shares for the third quarter; and
- Estimated cash proceeds from the exercise of employee stock
options of $124.0 million for the year and $49.0 million for the
third quarter.
|
|
|
|
|
|
|
Three Months Ending September
30, |
|
Full Year Ending December 31, |
(in millions, except per share data) |
|
2016 Guidance |
|
2015 Actual |
|
Revised 2016 Guidance |
|
Prior 2016 Guidance |
|
2015 Actual |
Net
Revenue |
|
$ |
233.9 |
|
|
$ |
147.8 |
|
|
$ |
822.0 |
|
|
$ |
825.7 |
|
|
$ |
575.1 |
|
Net
Income |
|
$ |
89.0 |
|
|
$ |
33.2 |
|
|
$ |
283.8 |
|
|
$ |
270.4 |
|
|
$ |
128.1 |
|
Funds From
Operations (1) |
|
$ |
112.6 |
|
|
$ |
57.1 |
|
|
$ |
378.4 |
|
|
$ |
365.0 |
|
|
$ |
223.8 |
|
Adjusted Funds
From Operations (2) |
|
$ |
156.6 |
|
|
$ |
82.2 |
|
|
$ |
531.8 |
|
|
$ |
525.9 |
|
|
$ |
321.8 |
|
Adjusted EBITDA
(3) |
|
$ |
208.1 |
|
|
$ |
111.0 |
|
|
$ |
709.6 |
|
|
$ |
708.0 |
|
|
$ |
440.0 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income, per
diluted common share |
|
$ |
0.43 |
|
|
$ |
0.28 |
|
|
$ |
1.57 |
|
|
$ |
1.47 |
|
|
$ |
1.08 |
|
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|
(1) FFO is net income, excluding (gains) or losses from
sales of property and real estate depreciation as defined by
NAREIT.
(2) AFFO is FFO, excluding stock based compensation
expense, debt issuance costs amortization, other depreciation,
amortization of land rights, straight-line rent adjustments and
direct financing lease adjustments, reduced by capital maintenance
expenditures.
(3) Adjusted EBITDA is net income excluding interest,
taxes on income, depreciation, (gains) or losses from sales of
property, stock based compensation expense, straight-line rent
adjustments, direct financing lease adjustments and the
amortization of land rights.
Conference Call Details
The Company will hold a conference call on August 9, 2016
at 10:00 a.m. (Eastern Time) to discuss its financial results,
current business trends and market conditions.
Webcast
The conference call will be available in the Investor Relations
section of the Company's website at www.glpropinc.com. To listen to
a live broadcast, go to the site at least 15 minutes prior to the
scheduled start time in order to register, download and install any
necessary audio software. A replay of the call will also be
available for 90 days on the Company’s website.
To Participate in the Telephone Conference
Call:
Dial in at least five minutes prior to start time.Domestic:
1-877-407-0784International: 1-201-689-8560
Conference Call Playback:
Domestic: 1-877-870-5176International: 1-858-384-5517Passcode:
13641103The playback can be accessed through August 16, 2016.
Disclosure Regarding Non-GAAP Financial
Measures
Funds From Operations (“FFO”), Adjusted Funds From Operations
(“AFFO”) and Adjusted EBITDA, which are detailed in the
reconciliation tables that accompany this release, are used by the
Company as performance measures for benchmarking against the
Company’s peers and as internal measures of business operating
performance. The Company believes FFO, AFFO, and Adjusted
EBITDA provide a meaningful perspective of the underlying operating
performance of the Company’s current business. This is
especially true since these measures exclude real estate
depreciation, and we believe that real estate values fluctuate
based on market conditions rather than depreciating in value
ratably on a straight-line basis over time. In addition, in order
for the Company to qualify as a REIT, it must distribute 90% of its
REIT taxable income annually. The Company adjusts AFFO
accordingly to provide our investors an estimate of taxable income
for this distribution requirement. Direct financing lease
adjustments represent the portion of cash rent we receive from
tenants that is applied against our lease receivable and thus not
recorded as revenue and the amortization of land rights represents
the non-cash amortization of the value assigned to the Company's
assumed ground leases.
FFO, AFFO and Adjusted EBITDA are non-GAAP financial measures,
that are considered a supplemental measure for the real estate
industry and a supplement to GAAP measures. NAREIT defines FFO
as net income (computed in accordance with generally accepted
accounting principles), excluding (gains) or losses from sales of
property and real estate depreciation. We have defined AFFO
as FFO excluding stock based compensation expense, debt issuance
costs amortization, other depreciation, amortization of land
rights, straight-line rent adjustments and direct financing lease
adjustments, reduced by capital maintenance
expenditures. Finally, we have defined Adjusted EBITDA as net
income excluding interest, taxes on income, depreciation, (gains)
or losses from sales of property, stock based compensation expense,
straight-line rent adjustments, direct financing lease adjustments
and the amortization of land rights.
FFO, AFFO and Adjusted EBITDA are not recognized terms under
GAAP. Because certain companies do not calculate FFO, AFFO,
and Adjusted EBITDA in the same way and certain other companies may
not perform such calculation, those measures as used by other
companies may not be consistent with the way the Company calculates
such measures and should not be considered as alternative measures
of operating profit or net income. The Company’s presentation
of these measures does not replace the presentation of the
Company’s financial results in accordance with GAAP.
About Gaming and Leisure Properties
GLPI is engaged in the business of acquiring, financing, and
owning real estate property to be leased to gaming operators in
triple-net lease arrangements, pursuant to which the tenant is
responsible for all facility maintenance, insurance required in
connection with the leased properties and the business conducted on
the leased properties, taxes levied on or with respect to the
leased properties and all utilities and other services necessary or
appropriate for the leased properties and the business conducted on
the leased properties. GLPI expects to grow its portfolio by
pursuing opportunities to acquire additional gaming facilities to
lease to gaming operators. GLPI also intends to diversify its
portfolio over time, including by acquiring properties outside the
gaming industry to lease to third parties. GLPI elected to be taxed
as a real estate investment trust (“REIT”) for United States
federal income tax purposes commencing with the 2014 taxable year
and is the first gaming-focused REIT.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of Section 27A of the Securities Act and
Section 21E of the Securities Exchange Act of 1934, as
amended. These statements can be identified by the use of forward
looking terminology such as “expects,” “believes,” “estimates,”
“intends,” “may,” “will,” “should” or “anticipates” or the negative
or other variation of these or similar words, or by discussions of
future events, strategies or risks and uncertainties. Such forward
looking statements are inherently subject to risks, uncertainties
and assumptions about GLPI and its subsidiaries, including risks
related to the following: the ability to receive, or delays in
obtaining, the regulatory approvals required to own and/or operate
its properties, or other delays or impediments to completing GLPI’s
planned acquisitions or projects; including the
post-transaction impact on GLPI's financial condition, operating
results, strategy and plans; the ability to consummate our
anticipated acquisition of the equity interests of PA Meadows, LLC,
the owner of the Meadows Racetrack & Casino, including
consummation of our announced transaction with Pinnacle to acquire
the Meadows operating assets and enter into a long-term lease with
us; GLPI's ability to maintain its status as a REIT; the
availability of and the ability to identify suitable and attractive
acquisition and development opportunities and the ability to
acquire and lease those properties on favorable terms; our ability
to access capital through debt and equity markets in amounts and at
rates and costs acceptable to GLPI; changes in the U.S. tax law and
other state, federal or local laws, whether or not specific to
REITs or to the gaming or lodging industries; and other factors
described in GLPI’s Annual Report on Form 10-K for the year
ended December 31, 2015, Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K, each as filed with the Securities
and Exchange Commission. All subsequent written and oral forward
looking statements attributable to GLPI or persons acting on GLPI’s
behalf are expressly qualified in their entirety by the cautionary
statements included in this press release. GLPI undertakes no
obligation to publicly update or revise any forward looking
statements contained or incorporated by reference herein, whether
as a result of new information, future events or otherwise, 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.
Additional Information
This communication shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be
any sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
No offering of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the U.S.
Securities Act of 1933, as amended. This communication shall not
constitute an offer to sell or the solicitation of an offer to buy
any securities, nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. No offering of securities
shall be made except by means of a prospectus meeting the
requirements of Section 10 of the U.S. Securities Act of 1933, as
amended. In connection with the establishment of its ATM Program,
the Company filed with the SEC a prospectus supplement dated August
9, 2016 to the prospectus contained in its effective Registration
Statement on Form S-3 (No. 333-210423), filed with the SEC on March
28, 2016. This communication is not a substitute for the
filed Registration Statement/prospectus or any other document that
the Company may file with the SEC or send to its shareholders in
connection with the proposed transactions. INVESTORS AND SECURITY
HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND PROSPECTUS
THAT HAVE BEEN FILED WITH THE SEC AND OTHER RELEVANT DOCUMENTS THAT
WILL BE FILED WITH THE SEC IF AND WHEN THEY BECOME AVAILABLE
BECAUSE THEY CONTAIN, OR WILL CONTAIN, IMPORTANT INFORMATION. You
may obtain free copies of the registration statement/prospectus and
other relevant documents filed by the Company with the SEC at the
SEC’s website at www.sec.gov. Copies of the documents filed with
the SEC by the Company are available free of charge on the
Company’s investor relations website at investors.glpropinc.com or
by contacting the Company’s investor relations representative at
(203) 682-8211.
Contact
Investor Relations – Gaming and Leisure
Properties, Inc.
Kara SmithT: 646-277-1211Email: Kara.Smith@icrinc.com
Bill CliffordT: 610-401-2900Email: Bclifford@glpropinc.com
GAMING AND
LEISURE PROPERTIES, INC. AND
SUBSIDIARIESConsolidated Statements of
Operations(in thousands, except per share data)
(unaudited) |
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Revenues |
|
|
|
|
|
|
|
Rental
income |
$ |
142,101 |
|
|
$ |
98,295 |
|
|
$ |
242,316 |
|
|
$ |
195,843 |
|
Income
from direct financing lease |
12,631 |
|
|
— |
|
|
12,631 |
|
|
— |
|
Real
estate taxes paid by tenants |
15,673 |
|
|
12,943 |
|
|
27,500 |
|
|
26,293 |
|
Total rental revenue
and income from direct financing lease |
170,405 |
|
|
111,238 |
|
|
282,447 |
|
|
222,136 |
|
Gaming |
35,539 |
|
|
37,131 |
|
|
70,922 |
|
|
73,510 |
|
Food,
beverage and other |
2,832 |
|
|
2,855 |
|
|
5,608 |
|
|
5,670 |
|
Total revenues |
208,776 |
|
|
151,224 |
|
|
358,977 |
|
|
301,316 |
|
Less
promotional allowances |
(1,415 |
) |
|
(1,357 |
) |
|
(2,796 |
) |
|
(2,744 |
) |
Net revenues |
207,361 |
|
|
149,867 |
|
|
356,181 |
|
|
298,572 |
|
Operating
expenses |
|
|
|
|
|
|
|
Gaming |
19,105 |
|
|
20,271 |
|
|
38,039 |
|
|
39,287 |
|
Food,
beverage and other |
2,084 |
|
|
2,177 |
|
|
4,137 |
|
|
4,361 |
|
Real
estate taxes |
16,075 |
|
|
13,209 |
|
|
28,282 |
|
|
26,964 |
|
General
and administrative |
22,261 |
|
|
23,722 |
|
|
43,167 |
|
|
45,261 |
|
Depreciation |
27,019 |
|
|
27,617 |
|
|
54,102 |
|
|
55,028 |
|
Total operating
expenses |
86,544 |
|
|
86,996 |
|
|
167,727 |
|
|
170,901 |
|
Income from
operations |
120,817 |
|
|
62,871 |
|
|
188,454 |
|
|
127,671 |
|
|
|
|
|
|
|
|
|
Other income
(expenses) |
|
|
|
|
|
|
|
Interest
expense |
(45,936 |
) |
|
(29,585 |
) |
|
(79,337 |
) |
|
(59,147 |
) |
Interest
income |
654 |
|
|
585 |
|
|
1,171 |
|
|
1,180 |
|
Total other
expenses |
(45,282 |
) |
|
(29,000 |
) |
|
(78,166 |
) |
|
(57,967 |
) |
|
|
|
|
|
|
|
|
Income from
operations before income taxes |
75,535 |
|
|
33,871 |
|
|
110,288 |
|
|
69,704 |
|
Income tax expense |
2,271 |
|
|
1,882 |
|
|
4,275 |
|
|
4,584 |
|
Net
income |
$ |
73,264 |
|
|
$ |
31,989 |
|
|
$ |
106,013 |
|
|
$ |
65,120 |
|
|
|
|
|
|
|
|
|
Earnings per
common share: |
|
|
|
|
|
|
|
Basic earnings per
common share |
$ |
0.40 |
|
|
$ |
0.28 |
|
|
$ |
0.70 |
|
|
$ |
0.57 |
|
Diluted earnings per
common share |
$ |
0.39 |
|
|
$ |
0.27 |
|
|
$ |
0.69 |
|
|
$ |
0.55 |
|
GAMING AND LEISURE PROPERTIES, INC. AND
SUBSIDIARIESOperations(in thousands)
(unaudited) |
|
|
|
|
|
NET REVENUES |
|
ADJUSTED EBITDA |
|
Three Months Ended June 30, |
|
Three Months Ended June 30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Real estate |
$ |
170,405 |
|
|
$ |
111,238 |
|
|
$ |
170,356 |
|
|
$ |
98,819 |
|
GLP Holdings, LLC.
(TRS) |
36,956 |
|
|
38,629 |
|
|
10,093 |
|
|
9,802 |
|
Total |
$ |
207,361 |
|
|
$ |
149,867 |
|
|
$ |
180,449 |
|
|
$ |
108,621 |
|
|
|
|
|
|
|
|
|
|
NET REVENUES |
|
ADJUSTED EBITDA |
|
Six Months Ended June 30, |
|
Six Months Ended June 30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Real estate |
$ |
282,447 |
|
|
$ |
222,136 |
|
|
$ |
273,866 |
|
|
$ |
199,162 |
|
GLP Holdings, LLC.
(TRS) |
73,734 |
|
|
76,436 |
|
|
19,816 |
|
|
20,021 |
|
Total |
$ |
356,181 |
|
|
$ |
298,572 |
|
|
$ |
293,682 |
|
|
$ |
219,183 |
|
GAMING AND
LEISURE PROPERTIES, INC. AND SUBSIDIARIESGeneral
and Administrative Expenses(in thousands) (unaudited) |
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Real estate general and
administrative expenses (1) (2) |
$ |
16,962 |
|
|
$ |
17,589 |
|
|
$ |
32,190 |
|
|
$ |
33,144 |
|
GLP Holdings, LLC.
(TRS) general and administrative expenses (2) |
5,299 |
|
|
6,133 |
|
|
10,977 |
|
|
12,117 |
|
Total |
$ |
22,261 |
|
|
$ |
23,722 |
|
|
$ |
43,167 |
|
|
$ |
45,261 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes stock based
compensation of $7.0 million and $14.3 million for the three and
six months ended June 30, 2016, respectively, and $8.2 million
and $17.4 million for the three and six months ended June 30,
2015, respectively.
(2) General and administrative expenses include payroll
related expenses, insurance, utilities, professional fees and other
administrative costs.
Reconciliation of
Net income (GAAP) to FFO, FFO to AFFO, and AFFO to Adjusted
EBITDAGaming and Leisure Properties, Inc. and
SubsidiariesCONSOLIDATED(in thousands)
(unaudited) |
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Net
income |
$ |
73,264 |
|
|
$ |
31,989 |
|
|
$ |
106,013 |
|
|
$ |
65,120 |
|
Losses or (gains) from
dispositions of property |
— |
|
|
66 |
|
|
(15 |
) |
|
67 |
|
Real estate
depreciation |
23,671 |
|
|
23,925 |
|
|
47,362 |
|
|
47,851 |
|
Funds from
operations |
$ |
96,935 |
|
|
$ |
55,980 |
|
|
$ |
153,360 |
|
|
$ |
113,038 |
|
Straight-line rent
adjustments |
13,956 |
|
|
13,956 |
|
|
27,912 |
|
|
27,912 |
|
Direct financing lease
adjustments |
12,525 |
|
|
— |
|
|
12,525 |
|
|
— |
|
Other depreciation
(1) |
3,348 |
|
|
3,692 |
|
|
6,740 |
|
|
7,177 |
|
Amortization of land
rights |
1,541 |
|
|
— |
|
|
1,541 |
|
|
— |
|
Debt issuance costs
amortization |
3,050 |
|
|
2,019 |
|
|
8,632 |
|
|
4,039 |
|
Stock based
compensation |
4,591 |
|
|
4,111 |
|
|
9,163 |
|
|
8,505 |
|
Maintenance CAPEX
(2) |
(835 |
) |
|
(775 |
) |
|
(1,197 |
) |
|
(1,726 |
) |
Adjusted funds
from operations |
$ |
135,111 |
|
|
$ |
78,983 |
|
|
$ |
218,676 |
|
|
$ |
158,945 |
|
Interest, net |
45,282 |
|
|
29,000 |
|
|
78,166 |
|
|
57,967 |
|
Income tax expense |
2,271 |
|
|
1,882 |
|
|
4,275 |
|
|
4,584 |
|
Maintenance CAPEX
(2) |
835 |
|
|
775 |
|
|
1,197 |
|
|
1,726 |
|
Debt issuance costs
amortization |
(3,050 |
) |
|
(2,019 |
) |
|
(8,632 |
) |
|
(4,039 |
) |
Adjusted
EBITDA |
$ |
180,449 |
|
|
$ |
108,621 |
|
|
$ |
293,682 |
|
|
$ |
219,183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other depreciation includes both real estate and
equipment depreciation from the Company's taxable REIT subsidiaries
as well as equipment depreciation from the REIT subsidiaries.
(2) Capital maintenance expenditures are expenditures to
replace existing fixed assets with a useful life greater than one
year that are obsolete, worn out or no longer cost effective to
repair.
Reconciliation of Net income (GAAP) to FFO, FFO to
AFFO, and AFFO to Adjusted EBITDAGaming and Leisure Properties,
Inc. and SubsidiariesREAL ESTATE and CORPORATE
(REIT)(in thousands) (unaudited) |
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Net
income |
$ |
70,654 |
|
|
$ |
29,728 |
|
|
$ |
100,755 |
|
|
$ |
60,151 |
|
Losses from
dispositions of property |
— |
|
|
46 |
|
|
— |
|
|
46 |
|
Real estate
depreciation |
23,671 |
|
|
23,925 |
|
|
47,362 |
|
|
47,851 |
|
Funds from
operations |
$ |
94,325 |
|
|
$ |
53,699 |
|
|
$ |
148,117 |
|
|
$ |
108,048 |
|
Straight-line rent
adjustments |
13,956 |
|
|
13,956 |
|
|
27,912 |
|
|
27,912 |
|
Direct financing lease
adjustments |
12,525 |
|
|
— |
|
|
12,525 |
|
|
— |
|
Other depreciation
(1) |
526 |
|
|
468 |
|
|
1,047 |
|
|
935 |
|
Amortization of land
rights |
1,541 |
|
|
— |
|
|
1,541 |
|
|
— |
|
Debt issuance costs
amortization |
3,050 |
|
|
2,019 |
|
|
8,632 |
|
|
4,039 |
|
Stock based
compensation |
4,591 |
|
|
4,111 |
|
|
9,163 |
|
|
8,505 |
|
Maintenance CAPEX |
— |
|
|
— |
|
|
— |
|
|
— |
|
Adjusted funds
from operations |
$ |
130,514 |
|
|
$ |
74,253 |
|
|
$ |
208,937 |
|
|
$ |
149,439 |
|
Interest, net (2) |
42,682 |
|
|
26,399 |
|
|
72,965 |
|
|
52,766 |
|
Income tax expense |
210 |
|
|
186 |
|
|
596 |
|
|
996 |
|
Maintenance CAPEX |
— |
|
|
— |
|
|
— |
|
|
— |
|
Debt issuance costs
amortization |
(3,050 |
) |
|
(2,019 |
) |
|
(8,632 |
) |
|
(4,039 |
) |
Adjusted
EBITDA |
$ |
170,356 |
|
|
$ |
98,819 |
|
|
$ |
273,866 |
|
|
$ |
199,162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other depreciation includes equipment depreciation
from the Company's REIT subsidiaries.
(2) Interest expense, net is net of intercompany interest
eliminations of $2.6 million and $5.2 million for both the three
and six months ended June 30, 2016 and 2015, respectively.
Reconciliation of Net income (GAAP) to FFO, FFO to
AFFO, and AFFO to Adjusted EBITDAGaming and Leisure Properties,
Inc. and SubsidiariesGLP HOLDINGS, LLC (TRS)(in
thousands) (unaudited) |
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Net
income |
$ |
2,610 |
|
|
$ |
2,261 |
|
|
$ |
5,258 |
|
|
$ |
4,969 |
|
Losses or (gains) from
dispositions of property |
— |
|
|
20 |
|
|
(15 |
) |
|
21 |
|
Real estate
depreciation |
— |
|
|
— |
|
|
— |
|
|
— |
|
Funds from
operations |
$ |
2,610 |
|
|
$ |
2,281 |
|
|
$ |
5,243 |
|
|
$ |
4,990 |
|
Straight-line rent
adjustments |
— |
|
|
— |
|
|
— |
|
|
— |
|
Direct financing lease
adjustments |
— |
|
|
— |
|
|
— |
|
|
— |
|
Other depreciation
(1) |
2,822 |
|
|
3,224 |
|
|
5,693 |
|
|
6,242 |
|
Amortization of land
rights |
— |
|
|
— |
|
|
— |
|
|
— |
|
Debt issuance costs
amortization |
— |
|
|
— |
|
|
— |
|
|
— |
|
Stock based
compensation |
— |
|
|
— |
|
|
— |
|
|
— |
|
Maintenance CAPEX
(2) |
(835 |
) |
|
(775 |
) |
|
(1,197 |
) |
|
(1,726 |
) |
Adjusted funds
from operations |
$ |
4,597 |
|
|
$ |
4,730 |
|
|
$ |
9,739 |
|
|
$ |
9,506 |
|
Interest, net |
2,600 |
|
|
2,601 |
|
|
5,201 |
|
|
5,201 |
|
Income tax expense |
2,061 |
|
|
1,696 |
|
|
3,679 |
|
|
3,588 |
|
Maintenance CAPEX
(2) |
835 |
|
|
775 |
|
|
1,197 |
|
|
1,726 |
|
Debt issuance costs
amortization |
— |
|
|
— |
|
|
— |
|
|
— |
|
Adjusted
EBITDA |
$ |
10,093 |
|
|
$ |
9,802 |
|
|
$ |
19,816 |
|
|
$ |
20,021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other depreciation includes both real estate and equipment
depreciation from the Company's taxable REIT subsidiaries.
(2) Capital maintenance expenditures are expenditures to replace
existing fixed assets with a useful life greater than one year that
are obsolete, worn out or no longer cost effective to repair.
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