Penn National CFO steps down, replaced with a long-time gaming industry analyst

January 4, 2021 9:10 PM
  • Howard Stutz, CDC Gaming Reports
January 4, 2021 9:10 PM
  • Howard Stutz, CDC Gaming Reports

Penn National Gaming has replaced its chief financial officer, who had been in the position for less than a year, with a long-time Wall Street gaming analyst.

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In a statement Monday, Penn said Felicia Hendrix, a managing director and equity research analyst at Barclays, will become CFO of the regional casino operator on March 2. Hendrix has been covering the gaming, lodging, and leisure industries for more than 20 years.

She replaces David Williams, a long-time Apple executive, who joined Penn last March. Williams was brought into the company by CEO Jay Snowden as part of a changeover in Penn’s corporate leadership.

Williams said he has been working remotely from the West Coast “and the potential strain of a relocation of my family during the ongoing pandemic has led me to this difficult decision.”

Williams’ experience with Apple and his background in technology, financial, and strategic growth, were viewed as helping Penn become an omni-channel provider of retail and online gaming and sports betting.

Snowden said Hendrix has covered Penn from an analyst’s perspective for two decades.

“I have long admired Felicia and her deep knowledge of the gaming industry, impressive work ethic, sharp wit, and attention to detail. I’m confident she’ll be able to hit the ground running in her new role,” Snowden said in a statement.

Williams, who will stay on as a temporary advisor during the transition, has been through a tumultuous year with Wyomissing, Pennsylvania-based Penn National, which saw its entire casino portfolio – 41 properties in 19 states – shut down for several months due to the coronavirus pandemic.

During 2020, Williams helped announce its $136 million acquisition of 36% of sports media platform Barstool Sports and the rollout of the company’s mobile sports wagering app. He also played a role in raising more than $1 billion in new equity to help the company weather the pandemic. In addition to the casino closures, Penn furloughed roughly 26,000 employees nationwide on April 1. Williams’ salary, along with salaries of other members of the management team reduced in April but restored in October.

“I am very proud of the way our company responded to the unprecedented challenges the pandemic presented,” Williams said in a statement.

Snowden admitted Williams was “thrown into the fire” rather quickly as events unfolded.

“I’m grateful for the way he stepped up and helped us navigate our way through the shutdowns of our casinos, ensuing companywide furloughs, and successful capital raises,” Snowden said. “We wish him all the very best in his future pursuits.”

Hendrix has covered companies with market capitalizations ranging from $2.5 billion to $45 billion and comprised differing revenue bases, cost structures, leverage levels, and management depth. Prior to joining Barclays, she was a managing director at Lehman Brothers.

Deutsche Bank gaming analyst Carlo Santarelli, in a research note Monday, said news of Williams’ departure was “relatively benign given the current environment.” However, he said the CFO change might be seen as “somewhat of a surprise” to Penn’s institutional investors.

“Recall, Mr. Williams was hired in part due to his technology-related background, in an effort to help aid in the Company’s transition to a more digital environment,” Santarelli said.

Penn National announced last month it was acquiring the operations of Hollywood Casino Perryville in Maryland for $31.1 million, which would give the company its 20th operating state and access to a new potential sports betting market.

Shares of Penn closed at $80.89 Monday on the Nasdaq, down $5.48, or 6.34%.

Howard Stutz is the executive editor of CDC Gaming Reports. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.