Penn National Gaming Inc (PENN) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $5.03 million, or $ 0.05 a share in the quarter, against a net loss of $9.07 million, or $0.11 a share in the last year period.
Revenue during the quarter went up marginally by 1.22 percent to $742.91 million from $733.97 million in the previous year period. Gross margin for the quarter expanded 75 basis points over the previous year period to 42.31 percent. Total expenses were 84.68 percent of quarterly revenues, down from 87.65 percent for the same period last year. This has led to an improvement of 298 basis points in operating margin to 15.32 percent.
Operating income for the quarter was $113.85 million, compared with $90.62 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $195.90 million compared with $206.33 million in the prior year period. At the same time, adjusted EBITDA margin contracted 174 basis points in the quarter to 26.37 percent from 28.11 percent in the last year period.
Timothy J. Wilmott, president and chief executive officer of Penn National Gaming, commented, “Our success throughout 2016 in generating strong free cash flow again highlights our ability to efficiently manage our existing and new operations and conservatively manage our capital structure to de-lever while pursuing new growth opportunities. With our omni-channel platform of casino operations, retail gaming and social gaming assets, Penn National Gaming continues to prudently grow its business and optimize operating efficiencies to generate margin growth. With the strong operating leverage in our model, we believe Penn National is well positioned to benefit from anticipated improvements in consumer spending.”
For the first-quarter, Penn National Gaming forecasts revenue to be $761 million. Penn National Gaming forecasts revenue to be $3,046.90 million for fiscal year 2017. Penn National Gaming projects net loss to be $4.80 million for the first-quarter. For fiscal year 2017, Penn National Gaming projects net income to be $28.50 million. The company forecasts operating income to be $125.20 million for the first-quarter. For fiscal year 2017, the company forecasts operating income to be $516.30 million. The company expects diluted loss per share to be $0.05 for the first-quarter. For fiscal year 2017, the company expects diluted earnings per share to be $0.31.
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