Penn National Gaming reports fourth quarter loss

Penn National Gaming Thursday said it lost $355.4 million, or $4.54 per share, in the fourth quarter that ended Dec. 31. That compared with a loss of $378.6 million, or $4.77 per share, in the same quarter a year ago.

The loss was driven by a $520.5 million impairment charge the company booked on the non-cash value of its Lawrenceburg, Ind., casino, which could be negatively affected when the company's Ohio casinos open.

Companywide net revenue dropped 3 percent to $555.8 million from $571.1 million, with declines in gaming, food and beverage revenue.

"We have limited control over how consumers are continuing to respond to economic pressures and as a result, the gaming industry experienced revenue compression again in the fourth quarter," Carlino said in a statement.

Analysts were not deterred by the company's net loss, which was blamed on the challenging economy.

Macquarie Securities gaming analyst Joel Simkins said Penn National is adding earnings potential with its various regional development opportunities.

"At some point, we believe the regional operators will have to see a material improvement in top-line trends, but with uncertainty around unemployment and an economic recovery, we do not anticipate an imminent improvement in consumer spending," Simkins told investors.

Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.