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Las Vegas-based Pinnacle Entertainment reverses fourth-quarter net loss
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LAS VEGAS REVIEW-JOURNAL
Recovery in Southern and Midwest regional gaming markets, coupled with a significant reduction in corporate overhead, gave a boost to the quarterly earnings of Las Vegas-based casino operator Pinnacle Entertainment.
The company said Wednesday it had net income of $24.9 million, or 40 cents a share, for the quarter that ended Dec. 31, reversing a net loss of $10 million, or a loss of 5 cents per share, in the same period a year ago. Analysts polled by FactSet anticipated earnings of 10 cents per share.
Pinnacle said quarterly revenues grew 3.8 percent to $275.8 million in quarter. For all of 2011, Pinnacle said its revenues increased 7.8 percent to $1.14 billion.
Pinnacle said higher revenue at its L'Auberge Lake Charles and Boomtown Bossier City properties in Louisiana; the Belterra casino in Indiana; and its two St. Louis properties, River City and Lumiare Place, drove the quarter's gain.
"As we expected, 2011 was a breakout year for Pinnacle, with the company achieving records in total revenue and (cash flow)," Pinnacle Entertainment Chief Executive Officer Anthony Sanfilippo said in a statement.
Pinnacle's reduced its corporate overhead expenses by more than 37 percent in the fourth quarter as it cut costs at its Las Vegas headquarters and a service center.
"Overall, results reflect continued improvement in driving incrementally profitable revenue growth and reductions in its operating expense structure," JP Morgan gaming analyst Joe Greff told investors.
Pinnacle operates seven regional casinos in Louisiana, Missouri, and Indiana. It also owns a racetrack in Ohio where it opens to eventually develop a slot machine-only casino. The company is developing a casino-resort in Baton Rouge, La., that is expected to open in the fall, and has a stake in a company that is building a casino and hotel in Vietnam.
The company is in the process of selling the Boomtown Casino near Reno and is trying to sell land in Atlantic City.
Credit Suisse gaming analyst Joe Greff told investors Pinnacle, because of its concentration on regional markets, has additional improvement at its core properties in Louisiana and the Midwest.
Shares of Pinnacle closed Wednesday at $10.75 on the New York Stock Exchange, up 51 cents, or 4.98 percent.
Contact reporter Howard Stutz at hstutz@review journal .com or 702-477-3871. Follow @howardstutz on Twitter.
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I stayed at Lumiere Casino in St. Louis for the world series and I can not say enough what a piss poor establishment. They let someone set up a turntable 5 feet from my hotel room door at 10 at night and kept me up all night and wouldnt refund me anything or do anything for me I went to the office in Vegas and couldnt get in and called the office with no return call its no wonder there shares are down. Nobody knows what there doing there. I wont ever support a pinnacle gaming establishment again good to see them sell all their Nevada Casinos.