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One-time charge hurts Penn National fourth quarter results

An impairment charge in the fourth quarter sent M Resort owner Penn National Gaming to a net loss for the three month period, the company said Thursday.

Penn National, which operates 26 casinos and racetracks in 16 states and a Canadian province, said its net loss of $250.4 million for the quarter that ended Dec. 31, was primarily due to a $316.5 million non-cash charge. In the same quarter a year ago, the company lost $61.8 million.

The net loss translated into a loss per share of $3.18, compared with a net loss of 7 cents per share in the 2013 fourth quarter.

Penn National grew its fourth quarter overall revenue 1 percent to $651.4 million. In the company’s East-West division, which includes M Resort, net revenue 6.4 percent increased to $62.8 million. Penn does note break out results by individual property.

For all of 2014, Penn National saw its net revenue decline 11 percent to $2.59 billion and the company reduced its net loss to $232.2 million.

“On the whole, Penn’s fourth quarter results were better than expected,” said Stifel Nicolaus Capital Markets gaming analsyt Steven Wieczynski. “We believe Penn continues to successfully navigate a rather challenging regional operating environment.”

The company expects to open is $225 million Plainridge Park racetrack casino in Massachusetts in June and its $360 million Hollywood-branded casino on the Jamul Indian Village’s land near San Diego in the middle of 2016.

Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Follow @howardstutz on Twitter.

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