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Pinnacle Entertainment Reports 2012 Fourth Quarter And Record Full Year Results

Stocks in this article: PNK

LAS VEGAS, Feb. 13, 2013 (GLOBE NEWSWIRE) -- Pinnacle Entertainment, Inc. (NYSE:PNK) today reported financial results for the fourth quarter ended December 31, 2012.

2012 Fourth Quarter and Full Year Financial Highlights:

  • 2012 full year revenues increased $55.9 million or 4.9% year over year to a record $1,197.1 million, and Consolidated Adjusted EBITDA increased $33.0 million or 13.1% year over year to a record $285.2 million. The L'Auberge Lake Charles and St. Louis segments achieved record revenue, Adjusted EBITDA and Adjusted EBITDA margin in 2012.
  • 2012 fourth quarter revenues increased $25.8 million or 9.4% year over year to $301.6 million, and Consolidated Adjusted EBITDA increased $1.1 million or 1.7% year over year to $63.3 million.
  • Abnormally low table games hold percentage at the Company's Louisiana properties negatively affected Consolidated Adjusted EBITDA in the 2012 fourth quarter. Management estimates Consolidated Adjusted EBITDA would have been $3.4 million higher had table game hold at these properties been at normal levels.
  • Loss from continuing operations was $42.0 million versus income of $17.7 million in the prior year period, principally as a result of higher depreciation and interest expense from the opening of L'Auberge Baton Rouge and $40.6 million of one-time items (described below).
  • The Company recorded $40.6 million of charges in the 2012 fourth quarter, including: a non-cash write down of approximately $25 million related to its ACDL investment (included in Loss on equity method investment), a $10.2 million charge related to its St. Louis redevelopment agreement (included in Write-downs, reserves and recoveries, net) that reflects the aggregate impact of cash and land donation commitments made by the Company for various projects in St. Louis, and accelerated depreciation expense of $4.7 million stemming from the demolition of the grandstand and related facilities at River Downs (included in Depreciation and amortization).
  • Adjusted income per share, which normalizes for the effect of one-time items, was $0.03 in the 2012 fourth quarter versus $0.25 in the prior year period and a record $0.99 in the full year 2012 versus $0.69 in the prior year period. GAAP net loss per share was $0.72 in the 2012 fourth quarter versus income per share of $0.40 in the prior year period.
  • In 2012, the Company repurchased 4.4 million shares of stock for $51 million under its $100 million repurchase program, representing an approximate 7% reduction in its diluted share count. Upon announcing the proposed acquisition of Ameristar, the Company suspended share repurchase activity.

Additional Highlights:

  • On December 20, 2012, the Company entered into an agreement to acquire Ameristar Casinos, Inc. in an all cash transaction valued at $26.50 per Ameristar share.
  • The Company entered into a definitive agreement to dispose of its land holdings in Atlantic City for total consideration of approximately $30.6 million, subject to a financing contingency. The transaction is expected to close by the end of the 2013 first quarter.
  • On January 29, 2013, the Company completed the previously announced acquisition of a majority interest in the racing license holder for Retama Park Racetrack.

In the 2012 fourth quarter, revenues increased 9.4% or $25.8 million year over year to $301.6 million. Consolidated Adjusted EBITDA increased $1.1 million or 1.7% year over year to $63.3 million. Consolidated Adjusted EBITDA margin decreased 158 basis points year over year to 21.0%, principally due to L'Auberge Baton Rouge still being in its operational ramp up period. On a same store basis, Consolidated Adjusted EBITDA margin was essentially unchanged year over year at 22.5%.

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