Penn National Gaming Inc. net income falls 11 percent in third quarter

Penn National Gaming Inc. had net income of $41.3 million in the third quarter of 2013, down 11 percent from the net income the company posted in the third quarter of last year, according to financial statements released by the company Thursday.

Revenues for the company’s casinos and racetracks during the quarter were up 1 percent to $714.4 million during the quarter, but depreciation and amortization, interest expense, and the amount of free play awarded to casino patrons were all up during the quarter, according to the documents. In a release accompanying the documents, Penn’s executives said that the casino market was “soft,” in an acknowledgment that the market has become more competitive with the opening of new casinos in the Northeast and Midwest, where Penn’s properties are concentrated.

Interest expense in the quarter was $25.1 million, up from $20 million in the third quarter of last year, a jump of 25.5 percent, according to the documents. For the first nine months of the year, interest expense has been $80 million, up 43.4 percent compared to interest expense of $55.8 million in the first nine months of 2012.

Penn National has total debt of $2.4 billion, according to the documents. At the close of the third quarter, it had $267.8 million in cash.

Penn owns 28 gambling properties in 18 states, including Penn National Race Course in Pennsylvania, Zia Park in New Mexico, Charles Town Races in West Virginia, Beulah Park in Ohio, and a half-share in Sam Houston Race Park in Texas.