Economy cited as Pinnacle misses annual report deadline

By Steve Green

Tuesday, March 3, 2009 | 5:39 p.m.

Pinnacle Entertainment Inc. of Las Vegas, owner of several casinos around the country, said today it didn't file its required annual financial report on time because it needs more time to determine how badly the recession has eroded the value of its assets.

Pinnacle joined MGM Mirage in notifying the Securities and Exchange Commission it would be late in filing its annual reports.

Pinnacle said that "without unreasonable effort or expense,'' it was unable to file its Annual Report on Form 10-K for the year ended Dec. 31 by Monday's due date, but plans to file it by March 17.

Pinnacle said it needs extra time "because of the complexity of determining the amount of certain impairments related to goodwill, equity securities indefinite-lived intangible assets, real estate and other long-lived assets.''

"Extra time is needed to account for and review these impairments, in part, due to the magnitude and the number of impairments. These reviews and analyses relate to the current economic condition in the casino gaming industry and the deterioration in the credit and capital markets, causing the company to evaluate and test its goodwill and other long-term investments and assets for impairment,'' the company said.

Pinnacle expects the impairment charges will range between $275 million to $330 million for the fourth quarter of 2008 and between $302 million to $357 million for the fiscal year ended Dec. 31. Pinnacle does not expect any future cash expenses associated with the impairment charges.

In its notice of late filing Tuesday, Pinnacle said that for the fourth quarter of 2008, revenue was $259 million compared to $219 million in the fourth quarter of 2007.

Including the impairment charges, Pinnacle expects to record a loss ranging from about $253 million to $308 million for the quarter, compared with a loss of $19.2 million for the 2007 fourth quarter.

Pinnacle has casinos in southeastern Indiana; Lake Charles, New Orleans and Bossier City, La.; Reno and St. Louis; and is developing additional projects in Missouri and Louisiana. Its stock closed Tuesday at $6.89, down 36 cents. In the past year it has traded in a range between $2.58 and $17.86.

Steve Green can be reached at 990-7714 or [email protected].