Earnings Penn National profit decreases

WYOMISSING, Pa. – Penn National Gaming Inc. on Tuesday said profit in the first quarter fell because of a charge for retiring debt.

The casino owner, which plans to install slot machines at a harness racetrack in Bangor, said net income fell to $15.8 million, or 19 cents per share, from $17.8 million, or 22 cents per share. Excluding a loss on early debt retirement, earnings from continuing operations rose to 31 cents per share for the quarter, up from 26 cents per share a year ago. On that basis, earnings topped the estimate of analysts surveyed by Thomson Financial, who were looking for a profit of 28 cents per share.

Revenue rose to $289.3 million from $285.1 million.

The company said its results exceeded expectations because of improved cash flow from its Charles Town Races & Slot and Casino Rogue properties, as well as its management contract at Casino Rama in Ontario.

The company expects revenue for the second quarter to rise to $308.7 million from $290.1 million a year ago and net income excluding debt retirement and other items to rise to 37 cents per share from 29 cents.

Penn National raised its outlook for full-year earnings from continuing operations excluding items to $1.30 per share from an earlier forecast of $1.20. The company posted earnings on such a basis of $1.08 per share in 2004.

The company is in the process of acquiring rival Argosy Gaming, an Alton, Ill.-based operator of six riverboat casinos, in a transaction valued at $2.2 billion. The acquisition, expected to close in the third quarter, is not reflected in the company’s earnings outlook.