LAS VEGAS, Feb. 15, 2012 /PRNewswire/ -- Pinnacle
Entertainment, Inc. (NYSE: PNK) today reported financial results
for the fourth quarter and full year ended December 31, 2011, as summarized in the table
below. In the 2011 fourth quarter, revenues increased 3.8% or
$10.1 million year over year to
$275.8 million. Consolidated
Adjusted EBITDA(1) increased 22.9% or $11.6
million year over year to $62.2
million. Consolidated Adjusted EBITDA included
$0.8 million of severance and
relocation costs in the current year period and $2.8 million in the prior year period.
Fourth quarter performance was driven by Adjusted EBITDA(1)
growth at the Company's St. Louis,
L'Auberge Lake Charles, Boomtown Bossier City and Belterra
properties, as well as significant corporate overhead expense
reductions. Operating income increased $18.4 million or 98.6% year over year to
$37.1 million in the 2011 fourth
quarter. Income from continuing operations was $17.7 million in the 2011 fourth quarter, a
significant improvement from a loss of $(3.5) million in the prior year period.
For the full year 2011, revenues increased $82.6 million or 7.8% year over year to
$1,141.2 million. Consolidated
Adjusted EBITDA increased $38.5
million or 18.0% year over year to $252.1 million in 2011, including $11.0 million of severance charges and
non-recurring mychoice program re-launch costs. The
prior year included $6.1 million of
severance and relocation expenses. For the full year 2011,
operating income increased $76.4
million or 146.5% year over year to $128.6 million. Income from continuing operations
increased $71.0 million year over
year to $30.2 million from a loss of
$(40.8) million in the prior year
period.
Summary of
4Q 2011 and Full Year Results
|
|
($ in thousands, except per share data)
|
Three Months
Ended
December 31,
|
Year
Ended
December
31,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
Net revenues
|
$ 275,785
|
$ 265,732
|
$ 1,141,198
|
$ 1,058,568
|
|
Consolidated Adjusted EBITDA
(1)
|
$ 62,237
|
$ 50,658
|
$
252,129
|
$
213,633
|
|
Consolidated Adjusted EBITDA
margin (1)
|
22.6%
|
19.1%
|
22.1%
|
20.2%
|
|
Income (loss) from continuing
operations
|
$ 17,689
|
$
(3,465)
|
$
30,196
|
$
(40,841)
|
|
Income (loss) from continuing
operations margin
|
6.4%
|
(1.3)%
|
2.6%
|
(3.9)%
|
|
Operating income (2)
|
$ 37,071
|
$ 18,663
|
$
128,610
|
$
52,185
|
|
GAAP net income (loss)
(3)
|
$ 24,968
|
$ (10,083)
|
$
(2,539)
|
$
(23,419)
|
|
Diluted net income (loss) per
share (3)
|
$
0.40
|
$
(0.16)
|
$
(0.04)
|
$
(0.38)
|
|
Adjusted income (loss) per share
(4)
|
$
0.26
|
$
(0.03)
|
$
0.61
|
$
(0.21)
|
|
|
|
|
|
|
|
|
|
(1) For a further description of
Consolidated Adjusted EBITDA and Consolidated Adjusted EBITDA
margin, please see the section entitled "Non-GAAP Financial
Measures" and the reconciliations below.
|
|
(2) Operating income for the
three and twelve months ended December 31, 2011 includes total
impairments, write-downs and reserves, net of any recoveries,
resulting in income of $3.8 million and a loss of $1.2 million,
respectively. Operating income for the three and twelve
months ended December 31, 2010 includes similar items totaling $4.2
million and $31.8 million, respectively.
|
|
(3) GAAP net
income and diluted net income per share in the 2011 fourth quarter
and full-year periods include income of $7.3 million, or $0.12 per
share, net of taxes, and loss of $(32.7) million, or $(0.52) per
share, net of taxes, respectively, from discontinued operations, as
described below. For the 2010 fourth quarter, the loss from
discontinued operations, net of taxes, was $(6.6) million, or
$(0.11) per share, while for the full year 2010 income from
discontinued operations, net of taxes, was $17.4 million, or $0.29
per share, respectively. For a further description of
Adjusted net income (loss) per share, please see the section
entitled "Non-GAAP Financial Measures" below.
|
|
(4) For a
further description of Adjusted net income (loss) per share, please
see the section entitled "Non-GAAP Financial Measures" and the
reconciliations below.
|
|
|
|
|
|
|
Anthony Sanfilippo, president and
chief executive officer of Pinnacle Entertainment, commented, "In
2011, our team at Pinnacle established a solid foundation of
operating excellence. We made significant strides in
implementing revenue growth and operational improvement initiatives
across the portfolio, with the re-launched mychoice guest
loyalty program gaining significant traction and non-value added
expenses reduced across the enterprise. As we expected, 2011
was a breakout year for Pinnacle, with the Company achieving
records in total revenue and Consolidated Adjusted EBITDA. In
addition, our two largest operating segments, L'Auberge Lake
Charles and St. Louis, produced
record Adjusted EBITDA.
"Pinnacle finished 2011 on a strong note, and we entered 2012
with significant momentum. During the fourth quarter we
increased Consolidated Adjusted EBITDA 22.9% year over year through
a combination of profitable revenue growth and reductions in our
cost structure. As a result, our Consolidated Adjusted EBITDA
margin expanded 350 basis points year over year in the fourth
quarter.
"As we move further into 2012, we look to build on our record
2011 performance and remain focused on driving shareholder value.
Through the evolution of our mychoice program,
additional capabilities within our technology infrastructure,
incremental cost efficiencies throughout the enterprise, and
execution of projects in our growth pipeline, we believe 2012 will
be another year of significant growth for our Company."
Fourth Quarter and 2011 Operating Results Demonstrate
Significant Improvement
Fourth quarter revenue and Consolidated Adjusted EBITDA growth
was primarily driven by the continued solid performance of the
Company's St. Louis segment, which
consists of River City Casino, Lumiere
Place and Four Seasons Hotel & Spa. Operational
improvements at L'Auberge Lake Charles, Belterra and Boomtown
Bossier City properties, as well as a significant reduction in
corporate overhead, also contributed to the results.
The St. Louis segment continued
to ramp up during the fourth quarter, with further maturation of
River City and expense discipline across both properties.
Revenues for the 2011 fourth quarter improved 6.9% to
$93.6 million. Adjusted EBITDA
rose 50.0% or $7.8 million year over
year to $23.3 million. Adjusted
EBITDA margin in the St. Louis
segment increased 715 basis points year over year to 24.9% in the
fourth quarter. For the full year 2011, St. Louis revenues increased 13.3% to
$382.0 million and Adjusted EBITDA
was a record $86.5 million, up 38.9%
year over year.
Belterra's fourth quarter 2011 revenues increased 3.3% to
$37.4 million, and Adjusted EBITDA
increased 5.2% year over year to $6.6
million. Adjusted EBITDA margin increased 33 basis
points year over year to 17.8%. Revenues for the full year
2011 improved 1.8% to $154.8 million,
while Adjusted EBITDA declined 4.7% to $28.6
million.
L'Auberge Lake Charles fourth quarter 2011 revenues increased
8.7% year over year to $92.3 million,
and Adjusted EBITDA increased 6.4% year over year to $24.4 million. Adjusted EBITDA margin at
the property declined 58 basis points year over year in the 2011
fourth quarter to 26.4%. For the full year 2011, L'Auberge
Lake Charles revenues increased 9.8% to $375.4 million and Adjusted EBITDA was a record
$103.9 million, up $11.0 million or 11.8% year over year.
On L'Auberge Lake Charles' results, Mr. Sanfilippo commented,
"The fourth quarter capped a record year for L'Auberge Lake
Charles. We intend to continue investing in this valuable
asset to optimize the property and to drive further profitable
revenue growth. L'Auberge Lake Charles' fourth quarter 2011
performance is impressive considering the disruption from the
casino floor improvements made during the quarter. We
completed the replacement of all casino carpeting and slot bases
and renovated the property's high limit slot and table game areas
to better accommodate L'Auberge Lake Charles' higher end guests.
As a result of these projects, the property's average slot
count was reduced by 203 units or 12.7% during the fourth quarter,
including a closure of the high limit slot room for 70 days.
Additional operating expenses were incurred in an effort to
minimize the impact of the casino floor refresh program on guest
experience."
Boomtown New Orleans revenues declined 13.3% year over year to
$31.1 million in the 2011 fourth
quarter, and Adjusted EBITDA declined 12.5% to $10.7 million. Adjusted EBITDA margin at
the property was up 30 basis points year over year to 34.4% in the
2011 fourth quarter. Revenues for the full year 2011 declined
3.9% year over year, while Adjusted EBITDA rose 2.3% to
$44.9 million. Adjusted EBITDA
margin increased 206 basis points year over year to 33.6% in
2011.
On Boomtown New Orleans performance, Mr. Sanfilippo added, "In
the fourth quarter of 2011, Boomtown New Orleans began to face
difficult comparisons due to elevated local economic activity
created by the Deep Horizon oil spill cleanup and recovery efforts
late last year. We have made significant strides containing
costs to mitigate the effects of changing market dynamics in
New Orleans, but we recognize
additional efforts are needed to drive profitable revenue increases
at Boomtown."
Corporate overhead expenses declined $3.8
million or 37.4% year over year to $6.4 million in the 2011 fourth quarter.
For the full year 2011, corporate overhead expenses declined
$7.2 million or 20.3% year over year
to $28.5 million. In the fourth
quarter and full year 2011, corporate overhead expense reductions
were driven by efforts to eliminate non-value added expenses at the
Company's Las Vegas headquarters,
as well as a ramp up of cost savings related to the Company's
shared service center supporting our properties in the Midwest and
Louisiana.
Development Pipeline Update
Carlos Ruisanchez, executive vice
president and chief financial officer of Pinnacle Entertainment,
commented, "2011 was a noteworthy year for Pinnacle, as we had
across the board improvements in our operating results, cash flow
generation, development pipeline and capital structure. We
expect that 2012 could be another milestone year for the Company
given the opportunities that remain to drive growth in our existing
asset portfolio and with several pipeline projects reaching or
nearing completion.
"In the first quarter of 2012 we will begin the first phase of
an $82 million expansion at River
City by commencing construction on a 1,700 space covered parking
garage. A comprehensive plan will be implemented to minimize
disruption to the property during construction of this first phase.
Construction of the second phase, comprising of a 200-room
hotel tower and a multi-purpose event center, will commence at the
end of 2012 and is scheduled for completion in late-2013.
"Later this year, we will realize a major growth milestone with
the opening of L'Auberge Baton Rouge by Labor Day 2012. Construction at the site is
progressing rapidly and the project remains on budget. The
project will be another best-in-class property within our portfolio
and the Baton Rouge market when it
opens.
"In Ohio, we continue to view River Downs as a significant
growth opportunity for the company. We are preparing to develop
River Downs, pending final completion of the regulatory structure
to operate video lottery terminals at our facility and resolution
of a legal challenge in the state.
"Finally, construction on the Ho Tram Strip project in
Vietnam by Asian Coast Development
(Canada) Ltd., in which the
Company acquired a 26% ownership stake in August 2011, also continues to make significant
progress. The first phase of the development, the MGM Grand
Ho Tram, is scheduled to open by the end of the first quarter of
2013."
Additional Recent Developments
- In December 2011, Pinnacle
reached an agreement with the Madison House Group to terminate its
lease obligations in Atlantic
City.
- In December 2011, Pinnacle
reached a settlement on property tax appeals with the City of Atlantic City. As part of the
settlement, the assessed value of the Company's land in
Atlantic City has been reduced on
a go forward basis. In addition, the Company expects to
receive a cash refund of $8.2 million
by the end of the first quarter of 2012.
- The Company remains on track to close the previously announced
sale of its Boomtown Reno casino-resort operations by mid-2012.
The casino-resort buyers also have a one year option to
purchase 100% of the Company's membership interest in the current
gaming licensee, PNK (Reno), LLC,
and additional land adjacent to Boomtown Reno. The Company no
longer expects to close on a separate transaction to sell other
excess land adjacent to the casino-resort facility. The
Company will continue to market the remaining excess land.
- During the first quarter of 2012, the Company committed to
invest $2.0 million in Farmworks, a
land re-utilization project in Downtown
St. Louis. Pinnacle will receive credit for
approximately $10 million towards its
obligation to invest $50 million in
St. Louis as a result of this
transaction.
- In October 2011, the Company
entered into a settlement with the Port of Lake Charles whereby the Company swapped land
parcels and will receive $2.5 million
of credits on its L'Auberge Lake Charles property rent payments.
The Company recorded a gain of $3.2
million in its 2011 fourth quarter operating results related
to this settlement. This gain is reflected in write-downs,
reserves, and recoveries.
Liquidity and Capital Expenditures
At December 31, 2011, the Company
had approximately $78.6 million in
cash and cash equivalents, an estimated $65
million of which is used in day-to-day operations. As
of December 31, 2011, $56 million of the Company's $410.0 million credit facility was drawn and
approximately $11.1 million of
letters of credit were outstanding.
Capital expenditures totaled $42.3
million during the fourth quarter of 2011, including
$27.3 million related to construction
of L'Auberge Baton Rouge. Capital expenditures totaled $153.0 million during the full year 2011,
including $96.9 million related to
construction of L'Auberge Baton Rouge. Through December 31, 2011, the Company has incurred
$155.5 million of the $368 million budget for L'Auberge Baton Rouge,
excluding land cost and capitalized interest.
During 2012, the Company expects to spend between $50.0 million to $70.0 million on capital
expenditures associated with its existing operating properties and
corporate initiatives. The upper bound of this range is
dependent upon the evaluation and pursuit of staged hotel room
refresh programs and the renovation of certain food and beverage
outlets across the portfolio. The Company expects to incur
between $230.0 million to $240.0
million on expansion capital expenditures during 2012,
comprised of L'Auberge Baton Rouge and River City expansion.
Interest Expense
Gross interest expense before capitalized interest was
$24.8 million in the 2011 fourth
quarter versus $27.2 million in the
prior-year period. Capitalized interest in the 2011 fourth
quarter, related to the Company's L'Auberge Baton Rouge growth
project and ACDL investment, was $5.1
million. There was minimal capitalized interest in the
prior year period.
Discontinued Operations
Discontinued operations consist of the Company's Atlantic City, New Jersey and Boomtown Reno
operations, which are being marketed for sale or under contract;
its former President Riverboat Casino in St. Louis, Missouri; its former Casino Magic
Argentina operations; its former Casino Magic Biloxi, Mississippi operations; and its former
Bahamian operations. For the three months ended December 31, 2011, Pinnacle recorded income of
$7.3 million, net of income taxes,
related to its discontinued operations.
Investor Conference Call
Pinnacle will hold a conference call for investors today,
Wednesday, February 15, 2012, at
10:00 a.m. ET (7:00 a.m. PT) to discuss its 2011 fourth quarter
and twelve-month financial and operating results. Investors
may listen to the call by dialing (888) 792-8395 or, for
international callers, (706) 679-7241. The code to
access the conference call is 41898897. Investors may also
listen to the conference call live over the Internet at
www.pnkinc.com.
A replay of the conference call will be available shortly after
the conclusion of the call through February
29, 2012 by dialing (855) 859-2056 or, for
international callers, (404) 537-3406. The code to access the
replay is 41898897. The conference call will also be
available for replay at www.pnkinc.com.
(1) Non-GAAP Financial Measures
Consolidated Adjusted EBITDA, Consolidated Adjusted EBITDA
margin, Adjusted net income (loss), and Adjusted net income (loss)
per share are non-GAAP measurements. The Company defines
Consolidated Adjusted EBITDA as earnings before interest income and
expense, income taxes, depreciation, amortization, pre-opening and
development expenses, non-cash share-based compensation, asset
impairment costs, write-downs, reserves, recoveries,
corporate-level litigation settlement costs, gain (loss) on sale of
certain assets, loss on early extinguishment of debt, gain (loss)
on sale of equity security investments, minority interest and
discontinued operations. The Company defines Adjusted net
income (loss) as net income (loss) before pre-opening and
development expenses, asset impairment costs, write-downs,
reserves, recoveries, corporate-level litigation settlement costs,
gain (loss) on sale of certain assets, gain (loss) on early
extinguishment of debt, minority interest and discontinued
operations. The Company defines Adjusted net income (loss)
per share as net income (loss) before pre-opening and development
expenses, asset impairment costs, write-downs, reserves,
recoveries, corporate-level litigation settlement costs, gain
(loss) on sale of certain assets, gain (loss) on early
extinguishment of debt, minority interest and discontinued
operations divided by the number of shares of the Company's common
stock outstanding. The Company defines Consolidated Adjusted
EBITDA margin as Consolidated Adjusted EBITDA divided by revenues
on a consolidated basis. Not all of the aforementioned
benefits and costs occur in each reporting period, but have been
included in the definition based on historical activity.
The Company uses Consolidated Adjusted EBITDA and Consolidated
Adjusted EBITDA margin as relevant and useful measures to compare
operating results between accounting periods. The
presentation of Consolidated Adjusted EBITDA has economic substance
because it is used by management as a performance measure to
analyze the performance of its business and is especially relevant
in evaluating large, long-lived casino-hotel projects because it
provides a perspective on the current effects of operating
decisions separated from the substantial, non-operational
depreciation charges and financing costs of such projects.
Management eliminates the results from discontinued
operations as they are discontinued. Management also reviews
pre-opening and development expenses separately, as such expenses
are also included in total project costs when assessing budgets and
project returns, and because such costs relate to anticipated
future revenues and income. Consolidated Adjusted EBITDA does
not include depreciation or interest expense and therefore does not
reflect current or future capital expenditures or the cost of
capital. The Company compensates for these limitations by
using other comparative measures to assist in the evaluation of
operating performance. Management believes that Consolidated
Adjusted EBITDA is a useful measure for investors because it is an
indicator of the strength and performance of ongoing business
operations, including our ability to service debt and fund capital
expenditures, acquisitions and operations. These calculations
are commonly used as a basis for investors, analysts and credit
rating agencies to evaluate and compare operating performance and
value of companies within our industry. In addition, the
Company's credit facility and bond indentures require compliance
with financial measures similar to Consolidated Adjusted EBITDA.
Adjusted net income (loss) is presented solely as supplemental
disclosure, as this is one method that management reviews and uses
to analyze the performance of its core operating business.
For many of the same reasons mentioned above relating to
Consolidated Adjusted EBITDA, management believes Adjusted net
income (loss) and Adjusted net income (loss) per share are useful
analytic tools as they enable management to track the performance
of its core casino operating business separate and apart from
factors that do not impact decisions affecting its operating casino
properties, such as impairments of intangible assets or costs
associated with the Company's development activities.
Management believes Adjusted net income (loss) and Adjusted
net income (loss) per share are useful to investors since these
adjustments provide a measure of performance that more closely
resembles widely used measures of performance and valuation in the
gaming industry. Adjusted net income (loss) and Adjusted net
income (loss) per share do not include the costs of the Company's
development activities, certain asset sale gains, or the costs of
its refinancing activities, but the Company compensates for these
limitations by using other comparative measures to assist in
evaluating the performance of its business.
EBITDA measures, such as Consolidated Adjusted EBITDA and
Consolidated Adjusted EBITDA margin, Adjusted net income (loss) and
Adjusted income (loss) per share are not calculated in the same
manner by all companies and, accordingly, may not be an appropriate
measure of comparing performance among different companies.
See the attached "supplemental information" tables for a
reconciliation of Consolidated Adjusted EBITDA to Income (loss)
from continuing operations, a reconciliation of GAAP net income to
Adjusted net income (loss), a reconciliation of GAAP net income
(loss) per share to Adjusted net income (loss) per share and a
reconciliation of Consolidated Adjusted EBITDA margin to Income
(loss) from continuing operations margin.
(2) Definition of Adjusted EBITDA and Adjusted EBITDA Margin
for Operating Segments
The Company defines Adjusted EBITDA for each operating segment
as earnings before interest income and expense, income taxes,
depreciation, amortization, pre-opening and development expenses,
non-cash share-based compensation, asset impairment costs,
write-downs, reserves, recoveries, gain (loss) on sale of certain
assets, gain (loss) on early extinguishment of debt, gain (loss) on
sale of discontinued operations, and discontinued operations.
The Company defines Adjusted EBITDA margin for each operating
segment as Adjusted EBITDA divided by revenues. The Company
uses Adjusted EBITDA and Adjusted EBITDA margin to compare
operating results among its properties and between accounting
periods and for the same reasons stated above for Consolidated
Adjusted EBITDA, but on an operating segment level.
About Pinnacle Entertainment
Pinnacle Entertainment, Inc. owns and operates seven casinos,
located in Louisiana, Missouri, Indiana and Nevada, and a racetrack in Ohio. Pinnacle is also developing
L'Auberge Casino & Hotel Baton Rouge. Pinnacle also owns 26%
equity stake in Asian Coast Development (Canada) Ltd., an international development and
real estate company currently developing Vietnam's first large-scale integrated
casino-resort.
All statements included in this press release, other than
historical information or statements of historical fact, are
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These forward-looking statements, including
statements regarding the Company's future operating performance;
future growth; ability to implement strategies to improve revenues
and operating margins at the Company's properties; ability to
successfully implement marketing and branding programs to increase
revenue at the Company's properties; continued operating
improvement at the Company's properties and anticipated milestones;
completion and opening schedule of the Company's various projects;
the facilities, features and amenities of the Company's projects;
the facilities, features and amenities of the River City expansion
project; the possibility for video lottery terminals becoming
operational at Ohio
racetracks; the ability of the Company to develop a new gaming and
entertainment facility at River Downs; and the ability to sell or
otherwise dispose of discontinued operations, the projected opening
date for MGM Grand Ho Tram, are based on management's current
expectations and are subject to risks, uncertainties and changes in
circumstances that could significantly affect future results.
Accordingly, Pinnacle cautions that the forward-looking statements
contained herein are qualified by important factors that could
cause actual results to differ materially from those reflected by
such statements. Such factors include, but are not limited to: (a)
the Company's business may be sensitive to reductions in consumers'
discretionary spending as a result of downtowns in the economy; (b)
the global financial crisis may have an impact on the Company's
business and financial condition in ways that the Company currently
cannot accurately predict; (c) significant competition in the
gaming industry in all of the Company's markets could adversely
affect the Company's profitability; (d) the Company will have to
meet the conditions for receipt or maintenance of gaming licensing
approvals for the Baton Rouge project, some of which are beyond its
control; (e) many factors, including the escalation of construction
costs beyond increments anticipated in its construction budget and
unexpected construction delays, could prevent the Company from
completing its Baton Rouge project within budget and on time and as
required by the conditions of the Louisiana Gaming Control Board;
(f) video lottery terminals may not become operational at Ohio's
racetracks; (g) the terms of the Company's credit facility and the
indentures governing its senior and subordinated indebtedness
impose operating and financial restrictions on the Company; (h)
many factors, including the escalation of construction costs beyond
increments anticipated in construction budgets, could prevent ACDL
from completing its Ho Tram development project within budget and
on time and as required by the conditions of its certificate in
Vietnam; (i) ACDL will have to obtain all necessary approvals
for completing the Ho Tram development project, including gaming
and regulatory approvals, some of which are beyond its control; and
(j) other risks, including those as may be detailed from time to
time in the Company's filings with the Securities and Exchange
Commission ("SEC"). For more information on the potential factors
that could affect the Company's financial results and business,
review the Company's filings with the SEC, including, but not
limited to, its Annual Report on Form 10-K, its Quarterly Reports
on Form 10-Q and its Current Reports on Form 8-K.
Belterra, Boomtown, Casino Magic, L'Auberge Lake Charles,
L'Auberge Baton Rouge, Lumiere
Place, River City, and River Downs are registered trademarks
of Pinnacle Entertainment, Inc. All rights reserved.
Pinnacle
Entertainment, Inc.
Condensed
Consolidated Statements of Operations
(In
thousands, except per share data, unaudited)
|
|
|
|
|
For the three months ended
December 31,
|
For the twelve months ended
December 31,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
Revenues:
|
|
|
|
|
|
Gaming
|
$242,033
|
$236,271
|
$997,613
|
$932,894
|
|
Food and beverage
|
16,356
|
15,259
|
69,383
|
64,414
|
|
Lodging
|
8,828
|
7,948
|
37,993
|
36,322
|
|
Retail, entertainment and
other
|
8,568
|
6,254
|
36,209
|
24,938
|
|
|
275,785
|
265,732
|
1,141,198
|
1,058,568
|
|
Expenses and other
costs:
|
|
|
|
|
|
Gaming
|
135,390
|
136,760
|
563,889
|
530,841
|
|
Food and beverage
|
16,604
|
15,891
|
69,646
|
65,286
|
|
Lodging
|
5,118
|
5,029
|
20,982
|
21,668
|
|
Retail, entertainment and
other
|
4,498
|
2,459
|
21,099
|
10,762
|
|
General and
administrative
|
53,251
|
56,432
|
220,129
|
222,605
|
|
Depreciation and
amortization
|
25,977
|
27,809
|
103,863
|
109,745
|
|
Pre-opening and development
costs
|
1,643
|
1,478
|
8,817
|
13,649
|
|
Write-downs, reserves and
recoveries, net
|
(3,767)
|
1,211
|
4,163
|
31,827
|
|
|
238,714
|
247,069
|
1,012,588
|
1,006,383
|
|
Operating income
|
37,071
|
18,663
|
128,610
|
52,185
|
|
Other non-operating
income
|
107
|
2
|
397
|
226
|
|
Interest expense, net of
capitalized interest
|
(19,704)
|
(26,801)
|
(95,705)
|
(103,093)
|
|
Loss on early extinguishment of
debt
|
-
|
-
|
(183)
|
(1,852)
|
|
Loss from equity method
investment
|
(44)
|
-
|
(588)
|
-
|
|
Income (loss) from continuing
operations before
income taxes
|
17,430
|
(8,136)
|
32,531
|
(52,534)
|
|
Income tax (expense)
benefit
|
259
|
4,671
|
(2,335)
|
11,693
|
|
Income (loss) from continuing
operations
|
17,689
|
(3,465)
|
30,196
|
(40,841)
|
|
Income (loss) from discontinued
operations,
net of income
taxes
|
7,279
|
(6,618)
|
(32,735)
|
17,422
|
|
Net income (loss)
|
$24,968
|
$(10,083)
|
$(2,539)
|
$(23,419)
|
|
Net income (loss) per common
share—basic
|
|
|
|
|
|
Income (loss) from continuing
operations
|
$0.28
|
$(0.05)
|
$0.49
|
$(0.67)
|
|
Income (loss) from discontinued
operations,
net of income
taxes
|
$0.12
|
$(0.11)
|
$(0.53)
|
$0.29
|
|
Net income (loss) per
common share—basic
|
$0.40
|
$(0.16)
|
$(0.04)
|
$(0.38)
|
|
Net income (loss) per common
share—diluted
|
|
|
|
|
|
Income (loss) from continuing
operations
|
$ 0.28
|
$(0.05)
|
$0.48
|
$(0.67)
|
|
Income (loss) from discontinued
operations,
net of income
taxes
|
$0.12
|
$(0.11)
|
$(0.52)
|
$0.29
|
|
Net loss per common
share—diluted
|
$0.40
|
$(0.16)
|
$(0.04)
|
$(0.38)
|
|
Number of
shares—basic
|
62,134
|
61,516
|
61,989
|
60,872
|
|
Number of
shares—diluted
|
62,491
|
61,516
|
62,467
|
60,872
|
|
|
|
|
|
|
|
|
Pinnacle
Entertainment, Inc.
Condensed
Consolidated Balance Sheets
(In
thousands, unaudited)
|
|
|
|
|
|
|
December
31,
2011
|
December
31,
2010
|
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$78,597
|
$194,925
|
|
Other assets, including
restricted cash
|
283,122
|
152,277
|
|
Land, buildings, riverboats and
equipment, net
|
1,515,029
|
1,439,521
|
|
Assets of discontinued
operations held for sale
|
73,871
|
97,071
|
|
Total assets
|
$1,950,619
|
$1,883,794
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
Liabilities, other than
long-term debt
|
$204,319
|
$192,779
|
|
Long-term debt, including
current portion
|
1,223,985
|
1,176,717
|
|
Liabilities of discontinued
operations held for sale
|
2,923
|
6,928
|
|
Total
liabilities
|
1,431,227
|
1,376,424
|
|
|
|
|
|
Stockholders' equity
|
519,392
|
507,370
|
|
Total liabilities and
stockholders' equity
|
$1,950,619
|
$1,883,794
|
|
|
|
|
|
|
|
|
|
|
Pinnacle
Entertainment, Inc.
Supplemental
Information
Property
Revenues and Adjusted EBITDA,
Reconciliation of Consolidated
Adjusted EBITDA to Income (Loss) from Continuing
Operations,
and
Reconciliation of Consolidated Adjusted EBITDA
Margin
to Income
(Loss) from Continuing Operations Margin
(In
thousands, unaudited)
|
|
|
For the
three
months
ended December
31,
|
For the
twelve
months
ended December
31,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
Revenues
|
|
|
|
|
|
L'Auberge Lake
Charles
|
$92,284
|
$84,891
|
$375,387
|
$341,983
|
|
St. Louis (a)
|
93,558
|
87,564
|
382,019
|
337,043
|
|
Boomtown New Orleans
|
31,125
|
35,888
|
133,643
|
139,124
|
|
Belterra Casino
Resort
|
37,425
|
36,239
|
154,763
|
152,068
|
|
Boomtown Bossier City
|
19,565
|
20,733
|
84,999
|
87,925
|
|
River Downs (b)
|
1,798
|
-
|
10,258
|
-
|
|
Other
|
30
|
417
|
129
|
425
|
|
Total Revenues
|
$275,785
|
$265,732
|
$1,141,198
|
$1,058,568
|
|
Adjusted EBITDA (Loss)
(c)
|
|
|
|
|
|
L'Auberge Lake
Charles
|
$24,396
|
$22,934
|
$103,916
|
$92,929
|
|
St. Louis (a)
|
23,253
|
15,499
|
86,549
|
62,310
|
|
Boomtown New Orleans
|
10,711
|
12,243
|
44,938
|
43,919
|
|
Belterra Casino
Resort
|
6,631
|
6,303
|
28,569
|
29,972
|
|
Boomtown Bossier City
|
4,205
|
3,926
|
18,843
|
20,196
|
|
River Downs (b)
|
(540)
|
-
|
(2,236)
|
-
|
|
|
68,656
|
60,905
|
280,579
|
249,326
|
|
Corporate expenses
|
(6,419)
|
(10,247)
|
(28,450)
|
(35,693)
|
|
Consolidated
Adjusted EBITDA (c)
|
$62,237
|
$50,658
|
$252,129
|
$213,633
|
|
|
|
|
|
|
|
Reconciliation to Income (Loss)
from Continuing Operations
|
|
Consolidated Adjusted
EBITDA
|
$62,237
|
$50,658
|
$252,129
|
$213,633
|
|
Pre-opening and development
costs
|
(1,643)
|
(1,478)
|
(8,817)
|
(13,649)
|
|
Non-cash share-based
compensation
|
(1,313)
|
(1,497)
|
(6,676)
|
(6,227)
|
|
Write-downs, reserves and
recoveries, net
|
3,767
|
(1,211)
|
(4,163)
|
(31,827)
|
|
Depreciation and
amortization
|
(25,977)
|
(27,809)
|
(103,863)
|
(109,745)
|
|
Other non-operating
income
|
107
|
2
|
397
|
226
|
|
Interest expense, net of
capitalized interest
|
(19,704)
|
(26,801)
|
(95,705)
|
(103,093)
|
|
Loss on early extinguishment of
debt
|
-
|
-
|
(183)
|
(1,852)
|
|
Loss from equity method
investment
|
(44)
|
-
|
(588)
|
-
|
|
Income tax (expense)
benefit
|
259
|
4,671
|
(2,335)
|
11,693
|
|
Income (loss) from continuing
operations
|
$17,689
|
$(3,465)
|
$30,196
|
$(40,841)
|
|
Consolidated Adjusted EBITDA
margin (c)
|
22.6%
|
19.1%
|
22.1%
|
20.2%
|
|
Income (loss) from continuing operations margin
|
6.4%
|
(1.3)%
|
2.6%
|
(3.9)%
|
|
(a) St. Louis includes operating
results at Lumiere Place, River City Casino and Four Seasons Hotel
& Spa.
|
|
(b) River Downs was acquired on
January 28, 2011.
|
|
(c) See discussion of Non-GAAP
Financial Measures above for a detailed description of Consolidated
Adjusted EBITDA and Consolidated Adjusted EBITDA margin.
|
|
|
|
|
|
|
Pinnacle
Entertainment, Inc.
Supplemental
Information
Income
(Loss) from Discontinued Operations, Net of Income
Taxes
(In
thousands, unaudited)
|
|
|
For the
three months
|
|
For the
twelve months
|
|
|
ended
December 31,
|
|
ended
December 31,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
Atlantic City
|
$7,073
|
|
$ (2,729)
|
|
$(19,745)
|
|
$ (11,385)
|
|
Boomtown Reno
|
421
|
|
1,243
|
|
(12,794)
|
|
44
|
|
President Riverboat
Casino
|
(44)
|
|
16
|
|
(504)
|
|
(6,130)
|
|
Casino Magic
Argentina
|
(150)
|
|
-
|
|
137
|
|
3,363
|
|
The Casino at Emerald Bay in The
Bahamas
|
27
|
|
(8)
|
|
100
|
|
(753)
|
|
Casino Magic Biloxi
|
(33)
|
|
(59)
|
|
(120)
|
|
41,927
|
|
Income taxes
|
(15)
|
|
(5,081)
|
|
191
|
|
(9,644)
|
|
Income (loss) from
discontinued
operations, net of income
taxes
|
$ 7,279
|
|
$ (6,618)
|
|
$ (32,735)
|
|
$ 17,422
|
|
|
|
|
|
|
|
|
|
|
|
Pinnacle
Entertainment, Inc.
Supplemental
Information
Reconciliations of GAAP Net
Income (Loss) to Adjusted Net Income (Loss)
and GAAP Net
Income (Loss) Per Share to Adjusted Net Income (Loss) Per
Share
(In
thousands, except per share amounts, unaudited)
|
|
|
|
|
|
|
|
|
For the
three months
ended December
31,
|
For the
twelve months
ended December
31,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
$24,968
|
$(10,083)
|
$(2,539)
|
$(23,419)
|
|
Pre-opening and development
costs
|
1,643
|
1,478
|
8,817
|
13,649
|
|
Write-downs, reserves and
recoveries, net
|
(3,767)
|
1,211
|
4,163
|
31,827
|
|
Loss on early extinguishment of
debt
|
-
|
-
|
183
|
1,852
|
|
Adjustment for taxes on
above
|
855
|
(1,082)
|
(5,298)
|
(19,050)
|
|
(Income) loss from discontinued
operations, net of income
taxes
|
(7,279)
|
6,618
|
32,735
|
(17,422)
|
|
Adjusted net income (loss)
(a)
|
$16,420
|
$(1,858)
|
$38,061
|
$(12,563)
|
|
|
|
|
|
|
|
GAAP net income (loss) per
share
|
$0.40
|
$(0.16)
|
$(0.04)
|
$(0.38)
|
|
Pre-opening and development
costs
|
0.03
|
0.02
|
0.14
|
0.22
|
|
Write-downs, reserves and
recoveries, net
|
(0.06)
|
0.02
|
0.07
|
0.52
|
|
Loss on early extinguishment of
debt
|
-
|
-
|
0.00
|
0.03
|
|
Adjustment for taxes on
above
|
0.01
|
(0.02)
|
(0.08)
|
(0.31)
|
|
(Income) loss from discontinued
operations, net of income
taxes
|
(0.12)
|
0.11
|
0.52
|
(0.29)
|
|
Adjusted net income (loss) per
share (a)
|
$0.26
|
$(0.03)
|
$0.61
|
$(0.21)
|
|
Number of shares –
diluted
|
62,491
|
61,516
|
62,467
|
60,872
|
|
|
|
|
|
|
|
(a) See
discussion of Non-GAAP Financial Measures above for detailed
descriptions of Adjusted net income (loss) and Adjusted net income
(loss) per share.
|
|
|
|
|
|
|
SOURCE Pinnacle Entertainment, Inc.