Press Release: Pinnacle Entertainment, Inc.
January 23, 2001
GLENDALE, CA -- Pinnacle Entertainment, Inc. (NYSE: PNK) has reported that it expects results for the Company's
fourth quarter ended December 31, 2000 to be reduced by certain non-recurring charges and operating losses relating
to the Company's Belterra Casino Resort, recent severe winter storms and certain merger-related expenses.
Fourth Quarter Outlook
Based on current available information, the Company expects to report fourth quarter 2000 revenues between $120
million and $125 million, compared with $107.9 million in the year-ago fourth quarter after adjusting for operations
sold in 2000.
The Company expects to report earnings before interest, taxes, depreciation, amortization and non-recurring items
(``EBITDA'') between $12 million and $14 million for the fourth quarter of fiscal year 2000, compared with EBITDA
of $22.0 million for the fourth quarter of fiscal year 1999 after adjusting for operations sold in 2000, and a
net loss of between $(6) million and $(7) million, or $(0.22) to $(0.26) per diluted share, compared with a net
loss of ($351,000), or $(0.01) per diluted share in the year-ago quarter when adjusted for operations sold in 2000.
The fourth quarter of fiscal year 2000 includes an EBITDA loss of between $4.1 million and $4.3 million, and approximately
$1.8 million of pre-opening costs (compared to approximately $900,000 of such costs in the fourth quarter of 1999)
and approximately $2.2 million of depreciation expenses, associated with the Belterra Casino Resort. An additional
approximately $1.3 million in costs related to the proposed merger with an affiliate of Colony Capital (which has
been postponed) and asset disposition costs were incurred in the fourth quarter of 2000. Pinnacle Entertainment
expects to report fourth quarter and year-end financial results on February 7, 2001.
``Although harsh weather may continue to have a short-term effect on some of our properties, we remain very confident
about the long term outlook. We are focused and committed to achieving excellent operating performance in 2001.
We have a strong balance sheet, excellent properties in growing markets and an experienced management team to execute
our growth plan,'' stated Paul Alanis, President and CEO of Pinnacle Entertainment.
Belterra Casino Resort
``The losses experienced at the Belterra Casino Resort were primarily attributable to the opening of the property
during the traditionally slowest period of the year, severe weather conditions and delays in the implementation
of our marketing programs. For 2001, we anticipate total annual revenues of $130 million to $150 million and EBITDA
of $25 million to $30 million for the Belterra property. We remain confident in the long-term success of this property
as we believe we have an excellent facility and management team, as well as a strong and expanding market,'' Mr.
Alanis continued.
Casino Magic Bossier City Casino Property
The Company's Casino Magic property located in Bossier City, Louisiana was adversely impacted by severe weather
during the month, including ice storms and record cold weather during the New Year's holiday weekend.
Fiscal Year 2001 Guidance
Based on expected market and economic conditions and other factors, Pinnacle Entertainment anticipates total revenue
in 2001 between $575 million and $600 million, EBIDTA between $120 million and $125 million, and net income between
$15 million and $18 million, or $0.55 to $0.66 per diluted share.
These amounts represent the Company's best estimates at this time. The Company may provide financial guidance in
future press releases. Pinnacle Entertainment reserves the right to adjust its guidance at any time but does not
undertake any obligation to update or revise any guidance or other forward looking statements, whether as a result
of new developments or otherwise.
About Pinnacle Entertainment
Pinnacle Entertainment is a diversified gaming Company that owns and operates seven casinos (four with hotels)
in Nevada, Mississippi, Louisiana, Indiana and Argentina, and receives lease income from two card club casinos,
both in the Los Angeles metropolitan area.
(The Private Securities Litigation Reform Act of 1995 provides a ``safe harbor'' for forward-looking statements.
Forward-looking information involves important risks and uncertainties that could significantly affect future results
and accordingly, such results may differ from those expressed in forward-looking statements made by or on behalf
of Pinnacle Entertainment. Such statements include, but are not limited to,(a) expectations regarding the impact
of winter storms on company operations in the fourth quarter of fiscal year 2000; (b) expected financial results
for the quarter, fiscal year 2000, and fiscal year 2001; (c) the successful operation of Pinnacle Entertainment's
Belterra Casino Resort; (d) the company's operating performance in fiscal years 2000 and 2001; (e) market growth
in Louisiana and Mississippi; and (f) improving operating efficiency in fiscal year 2001. Pinnacle Entertainment
cautions that these statements are qualified by important factors that could cause actual results to differ materially
from those reflected by the forward-looking statements contained herein. Such factors include, but are not limited
to (a) the possible completion of the sale of Pinnacle Entertainment to PHCR; (b) the effect of current and future
weather conditions and other natural events; (c) overall economic conditions; (d) maintaining adequate financing
to meet strategic goals; (e) continuing regulatory approvals, (f) increased competition from casino operators with
greater resources, (g) changes in the gaming markets in which Pinnacle Entertainment operates, and (h) other risks
as detailed from time to time in Pinnacle Entertainment's filings with the Securities and Exchange Commission (``SEC'').
For more information on the potential factors that could affect the Company's financial results, review the Company's
filings with the SEC, including the Company's Annual Report on Form 10-K and Pinnacle Entertainment's other filings
with the SEC.)
SOURCE: Pinnacle Entertainment, Inc.