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Pinnacle Entertainment Reports Strong Third Quarter Results Including Consolidated Adjusted EBITDA Of $74.1 Million And Income From Continuing Operations Of $6.8 Million

Stocks in this article: PNK

LAS VEGAS, Oct. 24, 2012 (GLOBE NEWSWIRE) -- Pinnacle Entertainment, Inc. (NYSE:PNK) today reported financial results for the third quarter ended September 30, 2012.

2012 Third Quarter Financial Highlights:

  • Revenues increased $8.3 million or 2.8% year over year to $304.2 million.
  • Consolidated Adjusted EBITDA(1) increased $5.5 million or 8.0% year over year to $74.1 million, driven by record L'Auberge Lake Charles results, strong St. Louis performance and the opening of L'Auberge Baton Rouge.
  • Management estimates the impact from Hurricane Isaac negatively affected Adjusted EBITDA(2) of the Company's Louisiana operating properties by $1.6 million in the 2012 third quarter. In addition, 2012 third quarter Consolidated Adjusted EBITDA included $0.7 million of severance and relocation charges. Adjusting for these factors, Consolidated Adjusted EBITDA for the 2012 third quarter would have been $76.4 million.
  • Income from continuing operations decreased to $6.8 million versus $11.8 million in the prior year period, principally as a result of increased pre-opening expenses related to the opening of L'Auberge Baton Rouge.
  • Adjusted income per share(1), which normalizes for the effect of pre-opening expenses and other non-recurring items, increased $0.05 or 20% year over year to $0.30; GAAP net (loss) per share was $(0.01) in the 2012 third quarter and in the prior year period.

Additional Highlights:

  • Through October 23, 2012, the Company has repurchased 3.5 million shares of its common stock for $40 million under its $100 million share repurchase program, representing a 5.5% reduction in its diluted share count from the inception of the program in July 2012.
  • L'Auberge Baton Rouge opened on September 1, 2012 and contributed revenue of $13.1 million and Adjusted EBITDA of $1.5 million to 2012 third quarter operating results.
  • The Company is progressing toward an agreement to dispose of its land holdings in Atlantic City and expects to enter into a definitive agreement by year end. Separately, the Company expects to receive approximately $2.6 million from the New Jersey Casino Reinvestment Development Authority for the redemption of bond credits. In the 2012 third quarter, the Company recorded a non-cash impairment charge of $6.9 million related to its Atlantic City assets, which is included in Discontinued Operations.
  • On September 5, 2012, the Company was refunded its $25 million completion guarantee deposit by the Louisiana Gaming Control Board upon the L'Auberge Baton Rouge opening.
  • In August 2012, the Company entered into a Subscription Agreement and Amended and Restated Shareholders Agreement related to its investment in ACDL. The agreement provides that the Company invests $15.6 million in convertible preferred stock of ACDL or its pro-rata 26% share of a previously disclosed total capital raise by ACDL of $60 million.
  • On July 2, 2012 the Company closed the acquisition of Heartland Poker Tour.

In the 2012 third quarter, revenues increased 2.8% or $8.3 million year over year to $304.2 million. Consolidated Adjusted EBITDA increased $5.5 million or 8.0% year over year to $74.1 million versus $68.7 million in the prior year period. Consolidated Adjusted EBITDA margin(1) increased 116 basis points year over year to 24.4%.  

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