Calif. company posts income gain

Thursday, Nov. 2, 2000 | 10:54 a.m.

THE ASSOCIATED PRESS

Pinnacle Entertainment Inc. of Glendale, Calif., reported net income of $34.8 million, or $1.27 per share, for the quarter ending Sept. 30, a 30 percent increase on a per-share basis.

Revenues from continuing operations rose 4.1 percent to $125.7 million, while cash flow dropped 1.7 percent to $29.2 million.

Pinnacle's earnings were significantly impacted by the sale of its Casino Magic property in Bay St. Louis and Boomtown Biloxi casinos to Penn National Gaming Inc. for $195 million on Aug. 8. The sale resulted in an after-tax gain of $35.5 million.

Including these properties, total revenues were $142.1 million, down 23 percent, while cash flow fell 22 percent to $32.5 million. The year-ago earnings also included Hollywood Park Race Track and Casino, sold in September 1999.

Cash flow increased 15 percent at Boomtown Reno, to $7.8 million, while rising 7 percent at Casino Magic Bossier City and 8 percent at Casino Magic Argentina. Cash flow fell off 18 percent at Casino Magic Biloxi, and 30 percent at Boomtown New Orleans.

Pinnacle has signed an agreement to be acquired by Harvey Casino Resorts of Lake Tahoe, a subsidiary of Colony Capital of Los Angeles. The merger is expected to close by March 2001.