Pinnacle Entertainment Inc. (PNK, Financial) filed Quarterly Report for the period ended 2012-06-30.
Pinnacle Entertainment, Inc has a market cap of $682.2 million; its shares were traded at around $10.93 with a P/E ratio of 9.7 and P/S ratio of 0.6.
Boomtown New Orleans' revenue and Adjusted EBITDA decreased for the three and six months ended June 30, 2012. Boomtown New Orleans continues to experience difficult comparisons due to last year's elevated local economic activity created by the Deep Horizon oil spill cleanup and recovery efforts. We are making select facility improvements to increase the property's competitiveness, which includes plans to build a 150-room hotel tower with a budget of $20 million and completion expected in late-2013. We also continue to refine marketing programs to drive additional profitable revenue.
During the six months ended June 30, 2012, revenues and Adjusted EBITDA for Belterra were higher in comparison to the prior-year period primarily due to the evolution of our marketing programs, expense controls, and a non-recurring charge related to the launch of our mychoice customer loyalty program in 2011. Due to the change in medical claims expense discussed above, the use of medical pooling had a favorable impact $0.9 million on Adjusted EBITDA for Belterra for the six months ended June 30, 2012.
In January 2011, we completed the purchase of River Downs racetrack, located in southeast Cincinnati, Ohio, for approximately $45.2 million. Due to increased revenues and cost controls, Adjusted EBITDA (loss) has decreased for the three and six months ended June 30, 2012.
Loss on equity method investment: In August 2011, we invested $95 million in ACDL in exchange for a 26% ownership interest, which is accounted for under the equity method, and a management agreement related to the second phase of the Ho Tram Strip project. Under the equity method, the carrying value is adjusted for our share of ACDL's earnings and losses, as well as capital contributions to and distributions from ACDL. During the three and six months ended June 30, 2012, our proportional share of ACDL's losses totaled $1.2 million and $2.8 million, which under our accounting policy reflects the loss of ACDL on a one quarter lag.
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Pinnacle Entertainment, Inc has a market cap of $682.2 million; its shares were traded at around $10.93 with a P/E ratio of 9.7 and P/S ratio of 0.6.
Highlight of Business Operations:
The St. Louis segment consists of Lumière Place (which includes the Lumière Place Casino, the Pinnacle-owned Four Seasons Hotel St. Louis and HoteLumière) and River City. The increase in revenues is due to the maturation of River City, which opened in March 2010. Our combined monthly market share for our St. Louis properties increased over the prior-year period, reflecting the ramp-up of operations for River City. The Adjusted EBITDA increase reflects the benefits of a heightened focus on operating efficiencies primarily realized through our shared services arrangement in this market and due to a non-recurring charge related to the launch of our mychoice customer loyalty program in 2011. Beginning in the first quarter of 2012, we began accounting for medical claims through an enterprise-wide pooling of medical and related expenses, and allocating such expenses to each operating segment ratably based upon participant headcount. Previously, medical claims were expensed directly to the operating segment in which the participant resided. The use of medical claim pooling has no impact on Consolidated Adjusted EBITDA, but has impacted individual operating segments. For the three and six months ended June 30, 2012, relative to using the prior medical expense allocation methodology, the use of medical pooling had a negative impact of $0.9 million and $1.9 million, respectively, on Adjusted EBITDA for St. Louis.Boomtown New Orleans' revenue and Adjusted EBITDA decreased for the three and six months ended June 30, 2012. Boomtown New Orleans continues to experience difficult comparisons due to last year's elevated local economic activity created by the Deep Horizon oil spill cleanup and recovery efforts. We are making select facility improvements to increase the property's competitiveness, which includes plans to build a 150-room hotel tower with a budget of $20 million and completion expected in late-2013. We also continue to refine marketing programs to drive additional profitable revenue.
During the six months ended June 30, 2012, revenues and Adjusted EBITDA for Belterra were higher in comparison to the prior-year period primarily due to the evolution of our marketing programs, expense controls, and a non-recurring charge related to the launch of our mychoice customer loyalty program in 2011. Due to the change in medical claims expense discussed above, the use of medical pooling had a favorable impact $0.9 million on Adjusted EBITDA for Belterra for the six months ended June 30, 2012.
In January 2011, we completed the purchase of River Downs racetrack, located in southeast Cincinnati, Ohio, for approximately $45.2 million. Due to increased revenues and cost controls, Adjusted EBITDA (loss) has decreased for the three and six months ended June 30, 2012.
Loss on equity method investment: In August 2011, we invested $95 million in ACDL in exchange for a 26% ownership interest, which is accounted for under the equity method, and a management agreement related to the second phase of the Ho Tram Strip project. Under the equity method, the carrying value is adjusted for our share of ACDL's earnings and losses, as well as capital contributions to and distributions from ACDL. During the three and six months ended June 30, 2012, our proportional share of ACDL's losses totaled $1.2 million and $2.8 million, which under our accounting policy reflects the loss of ACDL on a one quarter lag.
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