- Establishes 2016 Fourth Quarter
Guidance and Revises Full Year Guidance -
Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) (the
“Company”), the first gaming-focused REIT in North America, today
announced results for the quarter ended September 30,
2016.
Financial Highlights
|
|
Three Months Ended September
30, |
(in millions, except per share data) |
|
2016 Actual |
|
2016 Guidance (1) |
|
2015 Actual |
Net
Revenue |
|
$ |
233.3 |
|
|
$ |
233.9 |
|
|
$ |
147.8 |
|
Net
Income |
|
$ |
89.6 |
|
|
$ |
89.0 |
|
|
$ |
33.2 |
|
Funds From
Operations (2) |
|
$ |
113.0 |
|
|
$ |
112.6 |
|
|
$ |
57.1 |
|
Adjusted Funds
From Operations (3) |
|
$ |
158.6 |
|
|
$ |
156.6 |
|
|
$ |
82.2 |
|
Adjusted EBITDA
(4) |
|
$ |
209.5 |
|
|
$ |
208.1 |
|
|
$ |
111.0 |
|
|
|
|
|
|
|
|
Net income, per
diluted common share |
|
$ |
0.43 |
|
|
$ |
0.43 |
|
|
$ |
0.28 |
|
|
|
|
|
|
|
|
|
|
|
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(1) The guidance figures in the tables above present the
guidance provided on August 9, 2016, for the three months ended
September 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, “Our diverse,
national portfolio of triple-net gaming assets continues to provide
steady, predictable cash flows, as evidenced by our third quarter
results. This was the first full quarter that we owned the 14
properties acquired from Pinnacle Entertainment, Inc. (NASDAQ:PNK)
and we immediately benefited from these additional assets as our
increased scale, combined with the ongoing stability of the
regional gaming market, led to revenue growth of approximately 58%
over the third quarter of 2015. Also during the quarter we added
yet another high quality asset to our portfolio with the
acquisition of the Meadows Racetrack and Casino ("the Meadows")
real estate assets, while PNK purchased the operating assets and
leased the Meadows real property assets under a separate triple-net
lease. The total cost of the Meadows was $327.8 million which
includes all fees and taxes. Post quarter-end, we committed to
provide a new unsecured loan of up to $13.0 million to an affiliate
of Casino Queen for their purchase of the Lady Luck Casino in
Marquette, Iowa. At the time of funding of the new loan, Casino
Queen will pay in full the remaining principal of their existing
secured loan to the Company in the amount of $26.7 million. Looking
ahead, we continue to pursue incremental acquisitions as our
balance sheet naturally deleverages further, and while transaction
activity in the regional gaming space remains lumpy, we believe
there are opportunities for us to utilize our industry knowledge
and relationships to create significant additional value. In the
meantime, GLPI offers a stable, well supported dividend for
investors combined with attractive long-term growth prospects. We
remain on track to reach our stated goal of total company leverage
of under 5.5 times Adjusted EBITDA, pro forma for a full year
impact of both PNK and the Meadows, by year-end.”
The Company’s third quarter 2016 net income as
compared to its guidance was impacted by the following:
- Guidance did not include the Meadows closing, which caused a
favorable variance to rental income of $1.6 million, offset by
straight-line rent adjustments of $0.6 million and unfavorable
variances to interest of $0.4 million and depreciation of $0.3
million;
- Income from rental activities also had an unfavorable variance
of $0.6 million, due to lower performance at Penn National Gaming,
Inc.'s (NASDAQ:PENN) Hollywood Casino Columbus and Hollywood Casino
Toledo;
- Results from the TRS properties were unfavorable to guidance by
$0.3 million;
- Corporate expenses were approximately $0.8 million less than
guidance primarily due to lower than anticipated legal expenses of
$1.1 million, offset by a $0.3 million contribution to support our
employees impacted by flooding in Baton Rouge, Louisiana;
- Gain on sales of property was favorable to guidance by $0.4
million, primarily due to the sale of a parcel of land at the M
Resort operated by PENN.
In addition, AFFO was impacted by $0.9 million
of favorable capital maintenance expenditures for the quarter as
compared to guidance.
Portfolio Update
GLPI owns approximately 4,350 acres of land and 15.1 million
square feet of building space, which was 100% occupied as of
September 30, 2016. At the end of the third quarter of 2016,
the Company owned the real estate associated with 36 casino
facilities and leases 18 of these facilities to PENN, 15 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 $0.5
million for the three months ended September 30, 2016.
Balance Sheet Update
The Company had $25.4 million of unrestricted cash on hand and
$4.7 billion in total debt, including $1,125.0 million of debt
outstanding under its unsecured credit facility term loans and
$165.0 million outstanding under its unsecured credit facility
revolver at September 30, 2016. The Company’s debt structure
at September 30, 2016 was as follows:
|
|
As of September 30, 2016 |
|
|
Interest Rate |
|
Balance |
|
|
|
|
(in thousands) |
Unsecured Term Loan A
(1) |
|
2.263 |
% |
|
$ |
300,000 |
|
Unsecured Term Loan A-1
(1) |
|
2.273 |
% |
|
825,000 |
|
Unsecured $700 Million
Revolver (1) |
|
2.285 |
% |
|
165,000 |
|
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 |
% |
|
1,313 |
|
Total long-term
debt |
|
|
|
4,716,313 |
|
Less: unamortized debt
issuance costs |
|
|
|
(54,630 |
) |
Total long-term debt,
net of unamortized debt issuance costs |
|
|
|
4,661,683 |
|
Less: current
maturities of long-term debt |
|
|
|
(106 |
) |
Long-term debt, net of
unamortized debt issuance costs and current maturities |
|
|
|
$ |
4,661,577 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The rate 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.
FinancingThrough September 30, 2016, GLPI
sold approximately 1.3 million shares of its common stock at an
average price of $35.00 per share under its at the market
("ATM") program, which generated gross proceeds of approximately
$46.3 million (net proceeds of approximately $45.7 million). The
Company used the net proceeds from ATM Program to partially fund
its acquisition of the Meadow's real estate assets.
Dividends
On August 3, 2016, the Company’s Board of Directors
declared the third quarter dividend. Shareholders of record on
September 12, 2016 received $0.60 per common share, which was
paid on September 23, 2016. On November 4, 2016, the
Company declared its fourth quarter 2016 dividend of $0.60 per
common share, payable on December 16, 2016 to shareholders of
record on December 5, 2016.
Guidance
The table below sets forth current guidance targets for
financial results for the 2016 fourth 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;
- Reflects the acquisition of the Meadows real estate assets,
which closed on September 9, 2016 with PNK as the operator;
- Reported rental income of approximately $685.6 million for the
year and $203.9 million for the fourth quarter, consisting
of:
(in millions) |
|
Fourth Quarter |
|
Full Year |
Cash Rental
Receipts |
|
|
|
|
PENN |
|
$ |
110.8 |
|
|
$ |
442.7 |
|
PNK |
|
$ |
101.4 |
|
|
$ |
264.1 |
|
Casino Queen |
|
$ |
3.6 |
|
|
$ |
14.2 |
|
PENN non-assigned land
lease |
|
$ |
(0.7 |
) |
|
$ |
(2.9 |
) |
Total Cash
Rental Receipts |
|
$ |
215.1 |
|
|
$ |
718.1 |
|
|
|
|
|
|
Non-Cash
Adjustments |
|
|
|
|
Straight-line rent |
|
$ |
(16.2 |
) |
|
$ |
(58.7 |
) |
PNK direct financing
lease |
|
$ |
(18.0 |
) |
|
$ |
(48.5 |
) |
Property taxes paid by
tenants |
|
$ |
20.8 |
|
|
$ |
68.7 |
|
PNK land lease paid by
tenant |
|
$ |
2.2 |
|
|
$ |
6.0 |
|
Total Rent as
Reported |
|
$ |
203.9 |
|
|
$ |
685.6 |
|
|
|
|
|
|
|
|
|
|
- Cash rent includes incremental escalator on the PENN building
rent component effective November 1, 2016, which increases 2016
annual rent by $0.8 million;
- TRS Adjusted EBITDA of approximately $35.8 million for the year
and $8.1 million for the fourth quarter with capital maintenance
expenditures of approximately $3.7 million for the year and $2.0
million for the fourth quarter;
- Capital project expenditures of approximately $0.3 million for
the year and $0.0 million for the fourth quarter;
- Blended income tax rate at the TRS entities of 44%;
- LIBOR is based on the forward yield curve;
- Real estate depreciation of approximately $96.1 million for the
year and $24.9 million in the fourth quarter;
- Non-real estate depreciation of approximately $13.5 million for
the year and $3.4 million in the fourth quarter;
- Expense related to acquired PNK land lease rights of
approximately $6.2 million for the year and $2.3 million in the
fourth quarter;
- Equity-related employee compensation affecting Adjusted EBITDA
includes the following:
- Expense of approximately $1.5 million for the year and $0.3
million for the fourth 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 $0.0
million for the fourth quarter for payments in lieu of dividends on
vested stock options issued pre-spin, which concluded with the
third quarter dividend;
- Equity-related employee compensation that does not affect
Adjusted EBITDA includes non-cash expense of approximately $18.4
million for the year and $4.6 million for the fourth quarter for
restricted stock awards;
- Interest expense includes approximately $11.6 million for the
year and $3.3 million for the fourth quarter of debt issuance costs
amortization for existing debt and $3.5 million for the year and
$0.0 million for the fourth 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 $5.3 million for the full year and $0.9 million for
the fourth 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 178.6 million shares for
the year and 208.0 million shares for the fourth quarter and the
fully diluted share count is approximately 180.8 million shares for
the year and 209.7 million shares for the fourth quarter; and
- Share counts exclude any additional shares that may be sold
under the ATM program in the fourth quarter;
- Estimated cash proceeds from the exercise of employee stock
options of $120.7 million for the year and $18.1 million for the
fourth quarter.
|
|
Three Months Ending December
31, |
|
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 |
|
$ |
238.6 |
|
|
$ |
128.7 |
|
|
$ |
828.1 |
|
|
$ |
822.0 |
|
|
$ |
575.1 |
|
Net
Income |
|
$ |
91.2 |
|
|
$ |
29.8 |
|
|
$ |
286.8 |
|
|
$ |
283.8 |
|
|
$ |
128.1 |
|
Funds From
Operations (1) |
|
$ |
116.1 |
|
|
$ |
53.7 |
|
|
$ |
382.5 |
|
|
$ |
378.4 |
|
|
$ |
223.8 |
|
Adjusted Funds
From Operations (2) |
|
$ |
162.0 |
|
|
$ |
80.6 |
|
|
$ |
539.2 |
|
|
$ |
531.8 |
|
|
$ |
321.8 |
|
Adjusted EBITDA
(3) |
|
$ |
215.5 |
|
|
$ |
109.9 |
|
|
$ |
718.7 |
|
|
$ |
709.6 |
|
|
$ |
440.0 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income, per
diluted common share |
|
$ |
0.44 |
|
|
$ |
0.25 |
|
|
$ |
1.59 |
|
|
$ |
1.57 |
|
|
$ |
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 November 8, 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:
13647100The playback can be accessed through November 15, 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, which is used for a bonus metric. 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, including statements regarding our financial outlook for
the fourth quarter of 2016 and the full 2016 fiscal year and our
expectations regarding future acquisitions and dividend payments.
Forward looking 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; 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
SUBSIDIARIES |
Consolidated Statements of
Operations |
(in thousands, except per share data) (unaudited) |
|
|
|
|
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Revenues |
|
|
|
|
|
|
|
Rental income |
$ |
160,664 |
|
|
$ |
97,754 |
|
|
$ |
402,980 |
|
|
$ |
293,597 |
|
Income from direct financing
lease |
18,155 |
|
|
— |
|
|
30,786 |
|
|
— |
|
Real estate taxes paid by
tenants |
20,438 |
|
|
13,778 |
|
|
47,938 |
|
|
40,071 |
|
Total rental revenue
and income from direct financing lease |
199,257 |
|
|
111,532 |
|
|
481,704 |
|
|
333,668 |
|
Gaming |
32,770 |
|
|
34,915 |
|
|
103,692 |
|
|
108,425 |
|
Food, beverage and other |
2,613 |
|
|
2,794 |
|
|
8,221 |
|
|
8,464 |
|
Total revenues |
234,640 |
|
|
149,241 |
|
|
593,617 |
|
|
450,557 |
|
Less promotional allowances |
(1,365 |
) |
|
(1,449 |
) |
|
(4,161 |
) |
|
(4,193 |
) |
Net revenues |
233,275 |
|
|
147,792 |
|
|
589,456 |
|
|
446,364 |
|
Operating
expenses |
|
|
|
|
|
|
|
Gaming |
18,080 |
|
|
19,357 |
|
|
56,119 |
|
|
58,644 |
|
Food, beverage and other |
2,037 |
|
|
2,128 |
|
|
6,174 |
|
|
6,489 |
|
Real estate taxes |
20,866 |
|
|
14,174 |
|
|
49,148 |
|
|
41,138 |
|
General and administrative |
21,821 |
|
|
19,285 |
|
|
64,988 |
|
|
64,546 |
|
Depreciation |
27,165 |
|
|
27,557 |
|
|
81,267 |
|
|
82,585 |
|
Total operating
expenses |
89,969 |
|
|
82,501 |
|
|
257,696 |
|
|
253,402 |
|
Income from
operations |
143,306 |
|
|
65,291 |
|
|
331,760 |
|
|
192,962 |
|
|
|
|
|
|
|
|
|
Other income
(expenses) |
|
|
|
|
|
|
|
Interest expense |
(52,880 |
) |
|
(31,226 |
) |
|
(132,217 |
) |
|
(90,373 |
) |
Interest income |
481 |
|
|
581 |
|
|
1,652 |
|
|
1,761 |
|
Total other
expenses |
(52,399 |
) |
|
(30,645 |
) |
|
(130,565 |
) |
|
(88,612 |
) |
|
|
|
|
|
|
|
|
Income from
operations before income taxes |
90,907 |
|
|
34,646 |
|
|
201,195 |
|
|
104,350 |
|
Income tax expense |
1,307 |
|
|
1,417 |
|
|
5,582 |
|
|
6,001 |
|
Net
income |
$ |
89,600 |
|
|
$ |
33,229 |
|
|
$ |
195,613 |
|
|
$ |
98,349 |
|
|
|
|
|
|
|
|
|
Earnings per
common share: |
|
|
|
|
|
|
|
Basic earnings per
common share |
$ |
0.43 |
|
|
$ |
0.29 |
|
|
$ |
1.15 |
|
|
$ |
0.86 |
|
Diluted earnings per
common share |
$ |
0.43 |
|
|
$ |
0.28 |
|
|
$ |
1.14 |
|
|
$ |
0.83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAMING AND LEISURE PROPERTIES, INC. AND
SUBSIDIARIES |
Operations |
(in thousands) (unaudited) |
|
|
|
|
|
NET REVENUES |
|
ADJUSTED EBITDA |
|
Three Months Ended September
30, |
|
Three Months Ended September
30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Real estate |
$ |
199,257 |
|
|
$ |
111,532 |
|
|
$ |
201,600 |
|
|
$ |
102,353 |
|
GLP Holdings, LLC.
(TRS) |
34,018 |
|
|
36,260 |
|
|
7,899 |
|
|
8,627 |
|
Total |
$ |
233,275 |
|
|
$ |
147,792 |
|
|
$ |
209,499 |
|
|
$ |
110,980 |
|
|
|
|
|
|
|
|
|
|
NET REVENUES |
|
ADJUSTED EBITDA |
|
Nine Months Ended September
30, |
|
Nine Months Ended September
30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Real estate |
$ |
481,704 |
|
|
$ |
333,668 |
|
|
$ |
475,466 |
|
|
$ |
301,515 |
|
GLP Holdings, LLC.
(TRS) |
107,752 |
|
|
112,696 |
|
|
27,715 |
|
|
28,648 |
|
Total |
$ |
589,456 |
|
|
$ |
446,364 |
|
|
$ |
503,181 |
|
|
$ |
330,163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAMING AND LEISURE PROPERTIES, INC. AND
SUBSIDIARIES |
General and Administrative
Expenses |
(in thousands) (unaudited) |
|
|
|
|
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Real estate general and
administrative expenses (1) (2) |
$ |
16,203 |
|
|
$ |
13,521 |
|
|
$ |
48,393 |
|
|
$ |
46,665 |
|
GLP Holdings, LLC.
(TRS) general and administrative expenses (2) |
5,618 |
|
|
5,764 |
|
|
16,595 |
|
|
17,881 |
|
Total |
$ |
21,821 |
|
|
$ |
19,285 |
|
|
$ |
64,988 |
|
|
$ |
64,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes stock based compensation of $5.3 million and
$19.6 million for the three and nine months ended
September 30, 2016, respectively, and $7.2 million and $24.6
million for the three and nine months ended September 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
EBITDA |
Gaming and Leisure
Properties, Inc. and Subsidiaries |
CONSOLIDATED |
(in thousands)
(unaudited) |
|
|
|
|
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Net
income |
$ |
89,600 |
|
|
$ |
33,229 |
|
|
$ |
195,613 |
|
|
$ |
98,349 |
|
(Gains) or losses from
dispositions of property |
(445 |
) |
|
22 |
|
|
(460 |
) |
|
89 |
|
Real estate
depreciation |
23,802 |
|
|
23,867 |
|
|
71,164 |
|
|
71,718 |
|
Funds from
operations |
$ |
112,957 |
|
|
$ |
57,118 |
|
|
$ |
266,317 |
|
|
$ |
170,156 |
|
Straight-line rent
adjustments |
14,517 |
|
|
13,957 |
|
|
42,429 |
|
|
41,869 |
|
Direct financing lease
adjustments |
18,004 |
|
|
— |
|
|
30,529 |
|
|
— |
|
Other depreciation
(1) |
3,363 |
|
|
3,690 |
|
|
10,103 |
|
|
10,867 |
|
Amortization of land
rights |
2,311 |
|
|
— |
|
|
3,852 |
|
|
— |
|
Debt issuance costs
amortization |
3,257 |
|
|
3,691 |
|
|
11,889 |
|
|
7,730 |
|
Stock based
compensation |
4,641 |
|
|
4,153 |
|
|
13,804 |
|
|
12,658 |
|
Maintenance CAPEX
(2) |
(496 |
) |
|
(382 |
) |
|
(1,693 |
) |
|
(2,108 |
) |
Adjusted funds
from operations |
$ |
158,554 |
|
|
$ |
82,227 |
|
|
$ |
377,230 |
|
|
$ |
241,172 |
|
Interest, net |
52,399 |
|
|
30,645 |
|
|
130,565 |
|
|
88,612 |
|
Income tax expense |
1,307 |
|
|
1,417 |
|
|
5,582 |
|
|
6,001 |
|
Maintenance CAPEX
(2) |
496 |
|
|
382 |
|
|
1,693 |
|
|
2,108 |
|
Debt issuance costs
amortization |
(3,257 |
) |
|
(3,691 |
) |
|
(11,889 |
) |
|
(7,730 |
) |
Adjusted
EBITDA |
$ |
209,499 |
|
|
$ |
110,980 |
|
|
$ |
503,181 |
|
|
$ |
330,163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
EBITDA |
Gaming and Leisure
Properties, Inc. and Subsidiaries |
REAL ESTATE
and CORPORATE (REIT) |
(in thousands)
(unaudited) |
|
|
|
|
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Net
income |
$ |
88,261 |
|
|
$ |
31,626 |
|
|
$ |
189,016 |
|
|
$ |
91,777 |
|
(Gains) or losses from
dispositions of property |
(471 |
) |
|
10 |
|
|
(471 |
) |
|
56 |
|
Real estate
depreciation |
23,802 |
|
|
23,867 |
|
|
71,164 |
|
|
71,718 |
|
Funds from
operations |
$ |
111,592 |
|
|
$ |
55,503 |
|
|
$ |
259,709 |
|
|
$ |
163,551 |
|
Straight-line rent
adjustments |
14,517 |
|
|
13,957 |
|
|
42,429 |
|
|
41,869 |
|
Direct financing lease
adjustments |
18,004 |
|
|
— |
|
|
30,529 |
|
|
— |
|
Other depreciation
(1) |
526 |
|
|
470 |
|
|
1,573 |
|
|
1,405 |
|
Amortization of land
rights |
2,311 |
|
|
— |
|
|
3,852 |
|
|
— |
|
Debt issuance costs
amortization |
3,257 |
|
|
3,691 |
|
|
11,889 |
|
|
7,730 |
|
Stock based
compensation |
4,641 |
|
|
4,153 |
|
|
13,804 |
|
|
12,658 |
|
Maintenance CAPEX |
— |
|
|
— |
|
|
— |
|
|
— |
|
Adjusted funds
from operations |
$ |
154,848 |
|
|
$ |
77,774 |
|
|
$ |
363,785 |
|
|
$ |
227,213 |
|
Interest, net (2) |
49,799 |
|
|
28,045 |
|
|
122,764 |
|
|
80,811 |
|
Income tax expense |
210 |
|
|
225 |
|
|
806 |
|
|
1,221 |
|
Maintenance CAPEX |
— |
|
|
— |
|
|
— |
|
|
— |
|
Debt issuance costs
amortization |
(3,257 |
) |
|
(3,691 |
) |
|
(11,889 |
) |
|
(7,730 |
) |
Adjusted
EBITDA |
$ |
201,600 |
|
|
$ |
102,353 |
|
|
$ |
475,466 |
|
|
$ |
301,515 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $7.8 million for both the three
and nine months ended September 30, 2016 and 2015,
respectively.
Reconciliation of
Net income (GAAP) to FFO, FFO to AFFO, and AFFO to Adjusted
EBITDA |
Gaming and Leisure
Properties, Inc. and Subsidiaries |
GLP
HOLDINGS, LLC (TRS) |
(in thousands)
(unaudited) |
|
|
|
|
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Net
income |
$ |
1,339 |
|
|
$ |
1,603 |
|
|
$ |
6,597 |
|
|
$ |
6,572 |
|
Losses from
dispositions of property |
26 |
|
|
12 |
|
|
11 |
|
|
33 |
|
Real estate
depreciation |
— |
|
|
— |
|
|
— |
|
|
— |
|
Funds from
operations |
$ |
1,365 |
|
|
$ |
1,615 |
|
|
$ |
6,608 |
|
|
$ |
6,605 |
|
Straight-line rent
adjustments |
— |
|
|
— |
|
|
— |
|
|
— |
|
Direct financing lease
adjustments |
— |
|
|
— |
|
|
— |
|
|
— |
|
Other depreciation
(1) |
2,837 |
|
|
3,220 |
|
|
8,530 |
|
|
9,462 |
|
Amortization of land
rights |
— |
|
|
— |
|
|
— |
|
|
— |
|
Debt issuance costs
amortization |
— |
|
|
— |
|
|
— |
|
|
— |
|
Stock based
compensation |
— |
|
|
— |
|
|
— |
|
|
— |
|
Maintenance CAPEX
(2) |
(496 |
) |
|
(382 |
) |
|
(1,693 |
) |
|
(2,108 |
) |
Adjusted funds
from operations |
$ |
3,706 |
|
|
$ |
4,453 |
|
|
$ |
13,445 |
|
|
$ |
13,959 |
|
Interest, net |
2,600 |
|
|
2,600 |
|
|
7,801 |
|
|
7,801 |
|
Income tax expense |
1,097 |
|
|
1,192 |
|
|
4,776 |
|
|
4,780 |
|
Maintenance CAPEX
(2) |
496 |
|
|
382 |
|
|
1,693 |
|
|
2,108 |
|
Debt issuance costs
amortization |
— |
|
|
— |
|
|
— |
|
|
— |
|
Adjusted
EBITDA |
$ |
7,899 |
|
|
$ |
8,627 |
|
|
$ |
27,715 |
|
|
$ |
28,648 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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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