Penn National Gaming Inc. Q2 2009 Earnings Call Transcript

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2009-07-29 10:45:37.0

Tags: Pennsylvania, Variance, J.P. Morgan Chase & Co., Call Transcript, Penn National Gaming Inc., Earnings, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Joseph Greff with J.P. Morgan.

Joseph Greff - J.P. Morgan

Just going back and looking at the second quarter, I was hoping you could help quantify the variance between your guidance and actual EBITDA results. Among the things that you highlighted, Lawrenceburg the two items there, the transition and the medical claims, Charlestown. Then the one comment about Pennsylvania with the one $3 million catch up regulatory fees was that in your prior guidance for the second quarter?

Tim Wilmott

I will answer the Pennsylvania. Yes we definitely had the Pennsylvania charge in our guidance. The only thing I would add on the Pennsylvania piece is that when you back out the catch up portion our second quarter normalized margins were roughly 19.6% for the quarter. They would have been for the quarter without the catch up.

The $5 million variance is probably 50% Lawrenceburg and then you have Joliet, Zia and Charlestown that probably represent the majority of the rest of the variance.

Joseph Greff - J.P. Morgan

Okay that is helpful and then your comments about how the second quarter turned out and how July is turning spot on with your internal forecast, can you just comment on July? I guess what we saw in the second quarter was April was good, June was not good and May was somewhere in between. Is that a trend or is there a comparison issue? Then if you could maybe comment on July if you see it picking up from June levels. Then specifically at Lawrenceburg you mentioned you are pleased there, can you just talk about maybe sort of the neighborhood of a revenue growth rate there in the first 29 days here in July? Or maybe what you put in a sort of one spot per day perspective.

Then with respect to Joliet opening up is that having any negative impact at Aurora?

Peter Carlino

Joe, let’s break that into a couple of questions, you had three or four there. To your very first question, I don’t think there is any trend. There is no magic to this. If we all around the room everybody in this phone call can try to divine a plan going forward. Your guess is probably as good as ours, in fact we have a perfect idea, call us and tell us and we’ll make the adjustment.

 

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