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Pinnacle Entertainment Reports 2013 Second Quarter Results

LAS VEGAS, July 25, 2013 (GLOBE NEWSWIRE) -- Pinnacle Entertainment, Inc. (NYSE:PNK) today reported financial results for the second quarter ended June 30, 2013.

2013 Second Quarter Financial Highlights:

  • Revenues increased by $17 million or 5.7% to $315.3 million, and Consolidated Adjusted EBITDA was $72.7 million versus $73.2 million in the prior year period. 2013 second quarter Consolidated Adjusted EBITDA included $0.4 million of severance expense.
  • The St. Louis segment reported all-time record Adjusted EBITDA and Adjusted EBITDA margin of $26.1 million and 26.7%, respectively.
  • Abnormally low gaming hold percentage negatively affected Consolidated Adjusted EBITDA in the 2013 second quarter, principally at the Company's Lake Charles and Belterra properties. Management estimates Consolidated Adjusted EBITDA would have been $4.6 million higher had gaming hold at these properties been at normal levels.
  • Loss from continuing operations was $5.2 million versus income of $12.9 million in the prior year period. 2013 second quarter loss from continuing operations included $17.2 million of pre-opening and development expenses, principally associated with the Company's planned acquisition of Ameristar Casinos, Inc., and $1.9 million of write-downs, reserves and recoveries.
  • Adjusted income per share was $0.21 versus $0.29 in the prior year period. GAAP net loss per share was $0.09 versus income per share of $0.19 in the prior year period.

Additional Highlights:

  • On July 24, 2013, the Company's planned acquisition of Ameristar received regulatory clearance from the Missouri Gaming Commission. The Company has now obtained all required state gaming regulatory approvals needed to complete the planned acquisition.
  • In June 2013, the Company reached an agreement in principle with the Bureau of Competition staff of the Federal Trade Commission on proposed divestiture remedies to obtain anti-trust clearance for its planned acquisition of Ameristar Casinos, which included a proposed sale of Lumiere Place Casino and Hotels and Ameristar's Lake Charles development project. The Company anticipates a formal Consent Order detailing the terms and conditions of these proposed divestiture remedies and gaining anti-trust clearance to complete the acquisition to be approved by the FTC in August.
  • The Company entered into a definitive agreement to sell the Ameristar Casino Lake Charles development project to Golden Nugget, subject to closing conditions and regulatory approvals. Golden Nugget will pay total consideration equal to all cash expenditures on the development up until the date of closing, and the assumption of all outstanding payables related to the project at that time, less a $37 million credit. Golden Nugget will complete the development following the closing of the transaction. Through June 30, 2013, Ameristar has disclosed that it had invested $213.9 million in the Lake Charles project.
  • The Lumiere Place Casino and Hotels sale process is ongoing and the Company expects to enter into a definitive agreement for its disposition in the 2013 third quarter. In the trailing twelve month period ending June 30, 2013, the net revenues and Adjusted EBITDA for Pinnacle's St. Louis segment were $387 million and $99 million, respectively, and Lumiere Place Casino and Hotels contributed 49% and 35%, respectively, to those segment results.
  • The Company's planned acquisition of Ameristar remains on track to close in August 2013, subject to remaining required regulatory approvals and closing conditions.

In the 2013 second quarter, revenues increased by $17 million or 5.7% year over year to $315.3 million, while Consolidated Adjusted EBITDA was essentially unchanged year over year at $72.7 million. 2013 second quarter Consolidated Adjusted EBITDA was negatively affected by $0.4 million of severance expense, a majority of which is included in the Corporate expenses segment. Abnormally low gaming hold percentage negatively affected Consolidated Adjusted EBITDA in the 2013 second quarter, principally at the Company's Lake Charles and Belterra properties. Management estimates Consolidated Adjusted EBITDA would have been $4.6 million higher had hold at these properties been at normal levels. Consolidated Adjusted EBITDA margin decreased 150 basis points year over year to 23.0%, principally due to L'Auberge Baton Rouge still being in its operational ramp up period. On a same store basis, Consolidated Adjusted EBITDA margin declined 50 basis points year over year to 24%.

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