Casino operator reports loss

Monday, May 7, 2001 | 11 a.m.

Pinnacle Entertainment Inc., a Glendale, Calif.-based casino operator, reported a loss of $2.1 million, or 8 cents per share, for the quarter ending March 31.

In the year-ago period, Pinnacle recorded net income of $21.9 million, or 80 cents per share. Revenues declined 14 percent to $134 million, while cash flow fell 49 percent to $19.4 million.

Part of the declines were the result of Pinnacle's sale of two Mississippi casinos and its Turf Paradise Race Track near Phoenix. However, cash flow declined at four of the company's six casinos -- Boomtown Reno, Casino Magic Biloxi, Casino Magic Bossier City (La.) and Casino Magic Argentina. However, the company's Belterra casino, located between Louisville and Cincinnati and opened last October, reported positive cash flow of $383,000, its first cash flow-positive quarter.

Because of accounting changes, Pinnacle revised its 2001 revenue forecast to between $560 million and $585 million, its cash flow forecast to $110 million to $120 million, and its net income forecast to $13 million to $15 million, or between 50 and 55 cents per share.

During the March quarter, Pinnacle said it repurchased 1 million shares of stock for $10.9 million. The company said it has $9.1 million still available to buy more shares.