Penn National Gaming Tim Wilmott, President & COO East Coast Gaming Congress - May 24, 2011
Who is Penn National Gaming? Largest publicly traded regional gaming operator in the U.S., featuring a $3 billion market cap and $2.5 billion in annual revenues Largest pari-mutuel wagering operator in the U.S. Named 100 fastest growing companies in the country a record 6 out of 7 years 25 facilities in 17 jurisdictions across North America Approximately 15,000 employees companywide
Leading Regionally Diversified Gaming Company 23 facilities across 16 jurisdictions M Resort Bullwhackers Argosy Casino Sioux City Argosy Casino Riverside Hollywood Casino Aurora Empress Casino Hotel Argosy Casino Alton Casino Rama Hollywood (CANADA) Slots Hotel and Raceway Hollywood Casino at Penn National Raceway Park Race Course Freehold Beulah Park Raceway Hollywood Casino Perryville Charles Town Hollywood Races & Slots Casino Lawrenceburg Laurel Park & Pimlico Race Course Black Gold Casino at Zia Park Hollywood Casino Bay St. Louis Hollywood Casino Tunica Boomtown Biloxi Hollywood Casino Baton Rouge Sanford Orlando Kennel Club
1Q11 Financial Results ($ in millions) 1Q 2010 1Q 2011 Y-o-Y Gaming $543.4 $609.1 12.1% Food, Bev and Other 80.4 85.3 6.0% Mgmt Service Fee 3.2 3.3 3.1% (Promotional Allowances) (34.7) (30.7) (11.5%) Net Revenues $592.3 $667.0 12.6% Adj. EBITDA $148.8 $178.0 19.6% Adj. EBITDA Margin 25.1% 26.7% 1.6%
Initial Returns from Recent Expansions & Openings Capital Amount GGR Tax Date Project/Scope Spend Spent (3/31/11) Rate (2) Opened Hollywood Casino at Charles Town Table Games and F&B additions $40 $29.2 35% 7/2/10 Revenue Growth of 20.6% EBITDA Growth of 34.9% Hollywood Casino at Penn National Table Games $25 $24.5 16% 7/18/10 Revenue Growth of 10.1% EBITDA Growth of 40.8% Hollywood Casino Perryville New Slot Facility Cecil County, MD $94 $88.8 67% 9/27/10 Revenue of $56.9 million and EBITDA excluding pre-opening expenses of $8.8 million in six months since opening
Fully Financed Development Pipeline Planned Capital Capital Spent Gaming Age GGR Tax Project/Scope Spend (3/31/11) Population Rate Opening Hollywood Casino (JV) Full Casino Wyandotte County, KS $155 $44.9 0.6M 27% Q1 12 Hollywood Casino Full Casino Toledo, OH $300 $41.8 1.0M 33% 1H 12 Hollywood Casino Full Casino Columbus, OH $400 $45.2 1.8M 33% Q4 12
M Resort Las Vegas Acquired outstanding debt in October 2010 for $230.5 million Property features: Opened in March 2009 Sits on 90 acres approximately 10 miles south of the Las Vegas Strip 1,900 slots, 64 tables, 14 poker tables, race & sports book 390 hotel rooms Nevada regulatory approval received in May June 1, M Resort will become Penn s 18 th casino property
M Resort Las Vegas
Hollywood Casino Wyandotte $411M Investment 50/50 joint venture with International Speedway Corporation 2,000 gaming machines and 64 table games 82,000 sq. ft. gaming facility plus 42,000 sq. ft. for food and entertainment Located adjacent to Turn 2 at the Kansas Speedway Opening 1Q 2012
Hollywood Casino Wyandotte - Kansas
Hollywood Casino at Kansas Speedway
Hollywood Casino at Kansas Speedway Construction Progress
Ohio
Hollywood Casino Toledo Project Stats Size 290,000 SF Casino 2,000 Slot Machines, 60 Game Tables, 20 Table Poker Room Multiple Restaurants 860,000 SF Parking Garage 5 Levels, 3,000 + Vehicles Cost & Schedule Project Cost = $250 M $50 million license fee August 2010 groundbreaking 1 st half 2012 anticipated opening
Toledo Site
Hollywood Casino Toledo
Progress April 2011
Progress April 2011
Hollywood Casino Columbus $400 million investment 114 acre site, featuring approximately 300,000 sq. ft. casino and structured parking $20 million already spent on remediation 3,000 slot machines, approx 70 table games, 30 poker tables in Phase I Dining and entertainment: Steakhouse Entertainment Lounge Buffet Sports Pub 19
Hollywood Casino Columbus
Columbus Site Plan
Hollywood Casino Columbus
Diversifying and Growing the Operating Base Employee Tables Hotel Parking Count Slots Games Rooms Spaces Existing Total (3/31/11) 15,000 27,065 533 2,032 37,332 M Resort Las Vegas, NV 1,500 1,900 78 390 4,700 Hollywood Casino (50% JV) Wyandotte County, KS 1,000 2,000 64-2,800 Hollywood Casino Toledo, OH 1,200 2,000 80-4,000 Hollywood Casino Columbus, OH 2,000 3,000 100-4,500 Total New Properties 5,700 8,900 322 390 16,000 GROWTH +38% +32.9% +60.4% 19.2% +42.9%
Expansion States Texas Closed on 50/50 JV ownership of Sam Houston Race Park in Houston and two other TX tracks in April 2011 Represents option on the potential for legalization of gaming at tracks throughout the state Massachusetts Nearly approved gaming legislation in last year s session
Tim s Wish List