Pinnacle reports fourth quarter and full-year 2008 results

Consolidated Adjusted EBITDA was us$ 45.6 million in the current quarter, an increase of 38.5% from us$ 32.9 million in the fourth quarter of 2007. The 2008 quarterly results reflect the benefit of the year-end 2007 expansion of L’Auberge du Lac in Lake Charles, Louisiana; the continued ramp-up of operations at Lumiere Place; the November 2008 passage of Proposition A in Missouri and efforts to control overall costs. These results were partially offset by heightened competition for Belterra Casino Resort in Indiana beginning in mid-2008 and general economic conditions.

On a GAAP basis, the company reported a net loss of us$ 298 million for the fourth quarter of 2008. These results include approximately us$ 320 million in non-cash impairment charges for real estate, goodwill and other assets in recognition of decreased values in the current economy for casinos and casino development sites. GAAP net loss for the 2007 fourth quarter was us$ 19.2 million. Both periods also include significant pre-opening and development costs and non-cash charges related to share-based compensation.

For the year ended December 31, 2008, revenues rose 13.3% to us$ 1 billion and Consolidated Adjusted EBITDA was us$ 160 million compared to us$ 171 million for the prior-year period. The 2008 results reflect a record annual performance at L’Auberge du Lac and solid results at Boomtown New Orleans, both despite temporary hurricane-related closures, and the ongoing ramp-up of operations at Lumiere Place. The 2008 improvements were achieved despite heightened competition in Indiana, the closure of the truck stop at Boomtown Reno and the weakened economy.

On a GAAP basis, net loss for the 2008 fiscal year was us$ 323 million, which includes approximately us$ 347 million of non-cash impairment charges. The company did not receive tax benefits in the provision for taxes for most of such impairment in either the fourth quarter or the year, as it did not meet the measures for doing so. The 2008 annual results compare with a net loss of us$ 1.4 million for the 2007 period.

"Our properties performed well in the fourth quarter, despite a difficult national economy," said Daniel R. Lee, Pinnacle’s Chairman and CEO. "Same-store results increased versus last year’s fourth quarter due to continued strength at our Louisiana properties. Lumiere Place also continues to ramp up, as is typical for new casino hotels, with its payroll and marketing costs becoming more efficient relative to its revenues. Lumiere Place also benefited from the passage of Proposition A, which became effective mid-quarter."