Pinnacle swings to profit in second quarter

By Amanda Finnegan

Friday, July 24, 2009 | 8:50 a.m.

Pinnacle Entertainment today reported a net income of $4.7 million, or 8 cents per share during the second quarter, compared to a loss of $18.1 million, or 30 cents per share, a year earlier, the Las Vegas-based casino operator said today.

The quarterly results were helped by a gain of $12.9 million from the sale of equity securities owned by the company, Pinnacle cited in its second quarter report.

Revenue was flat at $266 million compared to the same period of 2008. Earnings before interest, taxes, depreciation and amortization rose 27.7 percent in the second quarter of 2009 from $38.3 million in the prior year period.

Gaming revenues also remained mostly flat at $299.7 million in the second quarter.

Revenue at Pinnacle’s Boomtown Reno Hotel and Casino fell to $10.6 million compared to $11.5 million in the same period of 2008. The company said the decline was a result of additional competition from California’s tribal casinos and a decline in general economic conditions. Pinnacle also noted it has refurbished the casino and more than half of its guest rooms within the past 18 months.

Earnings before interest, taxes, depreciation and amortization at Boomtown Reno improved to $82,000 from a loss of $1.3 in the comparable period of 2008 as a result of the property focusing on costs. Boomtown laid off 28 employees in February when it closed its truck stop. The casino also cut employee hours.

Pinnacle Entertainment operates seven casinos in Nevada, Missouri, Indiana, Louisiana and Argentina.

Pinnacle stock traded this morning at $10.75, up $1.12 or 11.6 percent.