Pinnacle Entertainment (PNK) Misses Q4 EPS by 6c

Pinnacle Entertainment (NASDAQ: PNK) reported Q4 EPS of ($0.16), $0.06 worse than the analyst estimate of ($0.10). Revenue for the quarter came in at $637.4 million versus the consensus estimate of $632.85 million.

2016 Fourth Quarter Highlights:

• Net revenues were $637.4 million, an increase of $79.0 million or 14.1% year over year. The increase was driven by a $68.3 million contribution from The Meadows Racetrack and Casino ("The Meadows") and growth of $10.7 million or 1.9% in the Company's same-store portfolio of businesses.
• Loss from continuing operations decreased by $5.2 million to $9.0 million from $14.2 million in the prior year, while the related margin improved to (1.4)% from (2.5)% in the prior year. GAAP diluted net loss per share was $0.16 versus $0.23 in the prior year.
• Consolidated Adjusted EBITDAR was $169.7 million, an increase of $26.4 million or 18.4% year over year. The year over year increase was driven by an $11.5 million contribution from The Meadows and growth of $14.9 million or 10.4% in the Company's same-store portfolio of businesses.
• Consolidated Adjusted EBITDAR included a benefit of approximately $4.6 million due to lower expense accruals from compensation program changes. The changes are expected to reduce compensation costs by approximately $2.0 million per year on a recurring basis.
• Consolidated Adjusted EBITDAR margin increased by 90 basis points year over year to 26.6%. Same-store Consolidated Adjusted EBITDAR margin increased by 214 basis points to 27.8%.
• Same-store Consolidated Adjusted EBITDAR growth and margin expansion were primarily driven by the performance of the Company's Ameristar Black Hawk, L'Auberge Lake Charles, L'Auberge Baton Rouge, Ameristar East Chicago, and River City businesses.
• Consolidated Adjusted EBITDA, net of Lease Payments, was $68.3 million, an increase of $20.0 million or 41.4% year over year.
• On October 12, 2016, the Company completed a $125 million private offering of additional 5.625% Senior Notes at 100.5% of face value. The net proceeds of the offering were used to repay a portion of the revolving credit facility borrowings incurred to finance The Meadows acquisition.
• The Company repaid approximately $11 million of Conventional Debt, reducing its total principal balance of Conventional Debt to $953 million as of December 31, 2016.

For earnings history and earnings-related data on Pinnacle Entertainment (PNK) click here.

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