Penn National Gaming Files 2015 Form 10-K and is Now Current with All Financial Filings Following Change in Lease Accounting
16 March 2016 - 5:18AM
Business Wire
Penn National Gaming, Inc. (PENN: Nasdaq) (“Penn National
Gaming” or the “Company”) announced today that it filed its 2015
Annual Report on Form 10-K with the Securities and Exchange
Commission (“SEC”). Today’s Form 10-K filing follows last week’s
filings of the Company’s restated financial statements for all
periods 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 was triggered by the change in the
classification of the Company’s Master Lease (the “Master Lease”)
with GLPI from an operating lease to a financing obligation.
Following today’s filing, the Company is now current with all of
its SEC filings and lender covenant obligations and has been
informed by the Nasdaq Stock Market that the Company has regained
compliance with the Nasdaq listing requirement relating to filing
obligations.
As previously disclosed, Penn National Gaming’s net cash flows
for all prior and future periods are not affected by the change in
accounting treatment, nor is its tax treatment impacted. In
addition, the adjustments in the restatement did 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:
- its cash position;
- its revenues from continuing
operations; or
- its rental payments or other
obligations under the Master Lease.
Saul Reibstein, Chief Financial Officer of Penn National Gaming,
noted, “We are pleased to confirm that we are current with all of
our filings with the SEC and appreciate the patience of the
Company’s shareholders, lenders, regulators and other constituents
during this process. Penn National led the industry in separating
its real estate assets from its operating assets and, while this
was a highly complex transaction, it served to create tremendous
value for our shareholders. Importantly, the restatement and
filings have not diminished that transaction or distracted
management from our strategic growth initiatives. We remain focused
on enhancing current operations and profitably growing market share
in key markets, generating new operating efficiencies, and
continuing our expansion initiatives, all of which we believe
position us for another period of 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 remediation of any material
weaknesses and the costs to strengthen our internal control
structure, potential investigations, litigation, or other
proceedings by governmental authorities, stockholders or other
parties, and risks related to the impact of the restatement of the
Company’s financial statements 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, 2015,
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/20160315006630/en/
Penn National Gaming, Inc.Saul V. ReibsteinChief Financial
Officer610-401-2049orJCIRJoseph N. Jaffoni, Richard
Land212-835-8500penn@jcir.com
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