PNK’s quarterly exclusions from adjusted EBITDA are material and consistent.
- Consistent - Although not depicted entirely on this chart, over the past 8 years, PNK has excluded GAAP operating expenses from Adjusted EBITDA every quarter.
- Material - “Non-recurring” operating charges have represented from 5% to 25% of company reported adjusted EBITDA.
- Reducing EBITDA estimates by 5-10% to account for likely “non-recurring” items going forward would result in ½ to a full turn higher EV/EBITDA valuation
- We will be looking at the other operators in upcoming posts.
