Pinnacle reports its 2012 4Q financial results

2012 full year revenues increased us$ 55.9 million or 4.9% year over year to a record us$1,197.1 million, and Consolidated Adjusted EBITDA increased us$33.0 million or 13.1% year over year to a record us$ 285.2 million. The L'Auberge Lake Charles and St. Louis segments achieved record revenue, Adjusted EBITDA and Adjusted EBITDA margin in 2012.

Abnormally low table games hold percentage at the company's Louisiana properties negatively affected Consolidated Adjusted EBITDA in the 2012 fourth quarter. Management estimates Consolidated Adjusted EBITDA would have been us$ 3.4 million higher had table game hold at these properties been at normal levels.

Loss from continuing operations was us$ 42 million versus income of us$ 17.7 million in the prior year period, principally as a result of higher depreciation and interest expense from the opening of L'Auberge Baton Rouge and us$ .6 million of one-time items.

The Company recorded us$ 40.6 million of charges in the 2012 fourth quarter, including: a non-cash write down of approximately us$ 25 million related to its ACDL investment (included in Loss on equity method investment), a us$10.2 million charge related to its St. Louis redevelopment agreement that reflects the aggregate impact of cash and land donation commitments made by the Company for various projects in St. Louis, and accelerated depreciation expense of us$ 4.7 million stemming from the demolition of the grandstand and related facilities at River Downs.

Adjusted income per share, which normalizes for the effect of one-time items, was us$0.03 in the 2012 fourth quarter versus us$ 0.25 in the prior year period and a record us$0.99 in the full year 2012 versus us$ 0.69 in the prior year period. GAAP net loss per share was us$0.72 in the 2012 fourth quarter versus income per share of us$ 0.40 in the prior year period.

In 2012, the company repurchased 4.4 million shares of stock for us$ 51 million under its us$ 100 million repurchase program, representing an approximate 7% reduction in its diluted share count. Upon announcing the proposed acquisition of Ameristar, the Company suspended share repurchase activity.

Additional Highlights:

On December 20, 2012, the company entered into an agreement to acquire Ameristar Casinos in an all cash transaction valued at us$ 26.50 per Ameristar share. The company entered into a definitive agreement to dispose of its land holdings in Atlantic City for total consideration of approximately us$30.6 million, subject to a financing contingency. The transaction is expected to close by the end of the 2013 first quarter. On January 29, 2013, the firm completed the previously announced acquisition of a majority interest in the racing license holder for Retama Park Racetrack.

In the 2012 fourth quarter, revenues increased 9.4% or us$25.8 million year over year to us$301.6 million. Consolidated Adjusted EBITDA increased us$1.1 million or 1.7% year over year to us$63.3 million. Consolidated Adjusted EBITDA margin decreased 158 basis points year over year to 21.0%, principally due to L'Auberge Baton Rouge still being in its operational ramp up period. On a same store basis, Consolidated Adjusted EBITDA margin was essentially unchanged year over year at 22.5%.

Operating income was us$ 11.9 million in the 2012 fourth quarter versus us$ 37.1 million in the prior year period. Loss from continuing operations was us$ 42 million in the 2012 fourth quarter versus income of us$17.7 million in the prior year period. The year over year decrease in both Operating income and Income from continuing operations was driven principally by increased depreciation and amortization associated with the opening of L'Auberge Baton Rouge, accelerated River Downs depreciation, and the St. Louis redevelopment agreement charge. Income from continuing operations was further impacted by the non-cash write-down of the Company's investment in ACDL and by increased interest expense from the financing completed in March 2012 and due to the opening of L'Auberge Baton Rouge, as the Company was capitalizing interest expense on its investment while the property was under construction in the prior year period.

Adjusted income per share, which normalizes for the effect of non-recurring and one-time items in both periods, was usus$ 0.03 in the 2012 fourth quarter versus us$0.25 in the prior year period. Adjusted income per share was a record us$0.99 in the full year 2012 versus us$0.69 in the prior year period. GAAP net loss per share was us$0.72 in the 2012 fourth quarter versus income per share of us$0.40 in the prior year period.