UPDATE 1-Penn National Gaming warns of 3rd qtr shortfall
(Adds detail, dateline)
LOS ANGELES, Oct 2 (Reuters) - Casino and racetrack operator Penn National Gaming Inc (PENN.O) warned that its quarterly earnings would fall short of previous estimates due to U.S. economic weakness and September hurricanes, sending its shares down more than 9 percent.
The company said it now expects third-quarter earnings before interest, taxes, depreciation and amortization of $146.3 million on revenue of $617 million. Penn had previously projected EBITDA of $178.6 million on revenue of $657.5 million.
The Wyomissing, Pennsylvania-based company said it also incurred higher-than-expected lobbying expenses during the quarter.
Penn said same-facility revenue (which excludes results from two recently-expanded properties) fell more than 8 percent in July and August, compared with a year earlier, and more than 21 percent in September.
The company said its revised EBITDA estimate includes around $3 million in costs related to hurricanes Gustav and Ike and around $15.3 million of lobbying expenses in Kansas, Maine, Maryland, Ohio, and West Virginia.
Penn said it has acted to reduce costs and take other steps intended to maintain operating margins in the face of the current operating environment. It also said it bought back around $31.7 million, or about 1.1 million shares, of its common stock in the third quarter.
Penn's shares, which fell 8.5 percent to close at $23.37 on Nasdaq, were down another 9.5 percent at $21.15 in after hours trading. (Reporting by Deena Beasley; Editing by Tim Dobbyn)
