Penn National posts big third-quarter gains

Vicki Smith

Wednesday, Oct. 23, 2002 | 9:48 a.m.

WYOMISSING, Pa. -- Penn National Gaming Inc., parent of the Charles Town Races & Slots and other racetracks and casinos, today reported a 30 percent jump in net income for the third quarter.

The West Virginia track led the company as it did last quarter, posting a 30 percent increase in net income before taxes, CEO Peter Carlino said today. The New Jersey and Pennsylvania tracks, however, were down about 16.5 percent for the same period.

"We, of course, are hopeful that the potential for slots at Pennsylvania tracks continues to advance, as this would not only benefit our operations there, but will also address the state's meaningful budget deficit and bolster the horse racing and agricultural industries," Carlino said.

Net income for the period ended Sept. 30 was $9.9 million, or 25 cents per share, on revenues of $175 million. The per share amount was adjusted to reflect a two-for-one stock split in June.

That compares to $7.7 million, or 25 cents per share, on revenues of $145 million in the same period last year.

The Charles Town Races posted earnings of $18.6 million before taxes, depreciation and other charges, up $4.3 million from the $14.3 million it reported in the third quarter of 2001.

A new food court opened at the track earlier this month, and about 500 slot machines were moved from a temporary tentlike structure to the new Slot City section of the casino.

"These changes are already generating significant gains in gaming revenues, and Charles Town Races & Slots is now the gaming revenue leader in West Virginia," Carlino said.

Charles Town has 2,583 slot machines in place, with approval for a total of 3,500.

Penn National's other holdings include: Penn National Race Course in Grantville, Pa.; the Downs at Pocono in Wilkes-Barre, Pa.; Freehold Raceway in Freehold, N.J.; 11 off-track betting parlors in Pennsylvania; the four-story riverboat Casino Rouge in Baton Rouge, La.; and the Bullwhackers casino in Black Hawk in Colorado. The company also manages Casino Roma in Orilla, Ontario.