Penn National Gaming is now current with all financial filings

(PRESS RELEASE) -- Penn National Gaming, Inc. announced today that it filed its 2015 Annual Report on Form 10-K with the Securities and Exchange Commission. Today’s Form 10-K filing follows last week’s filings of the Company’s restated financial statements for all periods since the spin-off of its real estate assets to Gaming and Leisure Properties, Inc. (GLPI) on November 1, 2013. The restatement was triggered by the change in the classification of the Company’s Master Lease with GLPI from an operating lease to a financing obligation. Following today’s filing, the Company is now current with all of its SEC filings and lender covenant obligations and has been informed by the Nasdaq Stock Market that the Company has regained compliance with the Nasdaq listing requirement relating to filing obligations.

As previously disclosed, Penn National Gaming’s net cash flows for all prior and future periods are not affected by the change in accounting treatment, nor is its tax treatment impacted. In addition, the adjustments in the restatement did not have a significant impact on the Company’s leverage ratios under its senior credit facility and other debt instruments (as the terms of those obligations require the Master Lease to be treated as an operating lease regardless of the treatment required under GAAP) and it will have no future impact on the following indicators of the Company’s performance:
— its cash position;
— its revenues from continuing operations; or
— its rental payments or other obligations under the Master Lease.

Saul Reibstein, Chief Financial Officer of Penn National Gaming, noted, “We are pleased to confirm that we are current with all of our filings with the SEC and appreciate the patience of the Company’s shareholders, lenders, regulators and other constituents during this process. Penn National led the industry in separating its real estate assets from its operating assets and, while this was a highly complex transaction, it served to create tremendous value for our shareholders. Importantly, the restatement and filings have not diminished that transaction or distracted management from our strategic growth initiatives. We remain focused on enhancing current operations and profitably growing market share in key markets, generating new operating efficiencies, and continuing our expansion initiatives, all of which we believe position us for another period of financial growth in fiscal 2016.”