Gaming company posts loss

Friday, Feb. 9, 2001 | 11:09 a.m.

Pinnacle Entertainment Inc. of Glendale, Calif., reported a loss of $6.1 million, or 23 cents per share, for the quarter ending Dec. 31, a big drop from the year-ago quarter.

In the year-ago period, Pinnacle reported net income of $4 million, or 15 cents per share. Cash flow fell 40 percent to $13.2 million, while revenues increased 14 percent to $123.1 million.

Like many gaming companies, Pinnacle said its properties were hurt by winter weather, as all four of the company's American casinos reported a cash flow decline in the quarter. But earnings were also hurt by the opening of Pinnacle's Belterra casino in Indiana, which recorded negative cash flow of $4.2 million. Pinnacle was also impacted by expenses related to its broken merger deal with Harveys Casino Resorts of Lake Tahoe, an affiliate of Colony Capital of Los Angeles.

Pinnacle said it anticipates it will break-even during the quarter ending March 31, with results improving significantly in the second and third quarters.

Pinnacle is the operator of the Boomtown and Casino Magic chains. It has properties in Reno, New Orleans, Biloxi and Bossier City, La.