loss narrowed and the company beat Wall Street estimates as more customers flocked to its Belterra, Ind., casino.
The casino resort company Wednesday said it lost $3.2 million, or 9 cents a share, narrower than the loss of $16.4 million, or 63 cents a share, it recorded a year earlier.
The latest quarter's results included $4 million in casino pre-opening and development costs and a $1.7 million loss on the early retirement of debt. The year-earlier quarter included a $5.4 million loss on the early retirement of debt, a goodwill impairment charge of $7.8 million and $5.3 million in legal, tax and pre-opening charges.
Excluding those items, Las Vegas-based Pinnacle said third-quarter adjusted net income was $2.5 million, or 7 cents a share, besting the average analyst estimate of 1 cent a share, and an increase from adjusted net income of $357,000, or 1 cent a share, in the third quarter of 2003.
Revenue came in at $146.5 million, up 4.8% from $139.7 million a year earlier and topping the Wall Street consensus for $140.7 million.
"We are very pleased with the results of this quarter," said Daniel Lee, Pinnacle's chief executive. "Belterra continued the strong growth it began last quarter with the opening of the new hotel tower. Boomtown New Orleans increased revenues and EBITDA
earnings before interest, taxes, depreciation and amortization despite a three-day closure from Hurricane Ivan. We also made great progress on our growth plans, with our two St. Louis projects being selected to proceed by the Missouri Gaming Commission and L'Auberge du Lac remaining on track for a spring 2005 opening."
The Belterra casino had strong occupancy, with 93.2% of rooms filled, despite a doubling of guestrooms from an expansion completed in May. Average room rates remained consistent with pre-expansion levels, Pinnacle said. Belterra's EBITDA jumped 49.3% year over year to $10.9 million from $7.3 million. EBITDA also improved at the Boomtown Bossier City casino, although Pinnacle's Biloxi, Miss., casino was shuttered for three days during Hurricane Ivan and saw EBITDA and revenue decrease year over year.
Pinnacle raised the lower end of its range for adjusted EBITDA for all of 2004. The company now expects the figure to come in between $97 million and $100 million; the previous range was $95 million to $100 million. Pinnacle expects unadjusted net income for the full year to come in between $7.1 million and $8.6 million.
The company's shares finished Tuesday's session down 3 cents, or 0.2%, at $14.83.