Thursday, casino chain Pinnacle Entertainment Inc. (PNK) posted a wider loss for the third quarter from a year-ago, primarily due to an early settlement of a debt, despite a slight increase in revenue.
Pinnacle's net loss for the third quarter widened to $21.9 million or $0.37 per share from $11.8 million or $0.20 per share in the year-ago period. The quarter's results include a $8.8 million charge related to early extinguishment of a debt.
On an average, 12 analysts polled by Thomson Reuters expected earnings of $0.02 per share for the quarter. Analysts' estimates typically exclude one-time items.
Revenues for the quarter improved 1.0% to $265 million from $263 million in the prior-year period, while analysts' anticipated revenues of $266.99 million for the quarter.
Pinnacle generated more revenue from gaming than from its food, beverages, lodging, retail and entertainment services offered. Gaming revenue increased to $227.35 million from $222.06 million a year ago. Food and beverage revenue declined to $16.57 million from $17.01 million, lodging revenue declined to $10.89 million from $11.70 million, and revenue from retail and entertainment decreased to $10.55 million from $12.07 million in the corresponding quarter last year.
Casino-wise, L'Auberge du Lac generated revenues of $85.8 million, up from $81.8 million, while Lumiere Place revenue increased 21.7% to a record $55.6 million from $45.7 million. Belterra's revenue decreased to $41.7 million from $43.9 million, while Boomtown Bossier City recorded revenue of $23.3 million, compared to $22.5 million in the year-ago period. Casino Magic Argentina revenue decreased to $9.1 million from $11.4 million as did Boomtown Reno revenues of $11.5 million, compared to $14.9 million last year. At President Casino, revenues declined to $5.0 million from $5.2 million in the prior-year period.
For the nine month- period, Pinnacle's net loss narrowed to $16.3 million or $0.27 per share from a net loss of $24.9 million or $0.42 per share a year ago.
The nine-month results include a $12.9 million gain on sale of equity securities and $8.8 million loss on early extinguishment of debt. The year-ago period's results include a $22.6 million impairment of investment in the same equity securities.
Revenue increased to $801 million from $786 million in the prior-year period.
Daniel Lee, Pinnacle's Chairman and Chief Executive Officer said, "In particular, Lumiere Place achieved record quarterly results. As we transition into 2010, we remain focused on our near- and long-term growth plans, including the opening of River City in the spring, ongoing construction at Sugarcane Bay in Lake Charles, Louisiana, and preparations for our planned casino in Baton Rouge."
PNK is currently trading at $9.16, down $0.28 or 2.97%, on a volume of 1.09 million shares on the NYSE.
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