NEWS: Casino operator Pinnacle Entertainment said Wednesday that its third-quarter loss widened, mostly pulled down by expenses related to its acquisition of Ameristar Casinos Inc.
DETAILS: Pinnacle announced in July that it would buy Ameristar for about $869 million. The companies put the transaction's value at $2.8 billion including debt. Pinnacle closed on its buyout of Ameristar in August. The current quarter included $63.1 million in preopening and development expenses tied to the Ameristar deal. The period also included a $30.8 million loss on early extinguishment of debt, a $144.6 million impairment charge related to the sale of Lumiere Place Casino and Hotels.
NUMBERS: For the three months ended Sept. 30, Pinnacle Entertainment Inc. lost $180.4 million, or $3.07 per share. That compares with last year's loss of $358,000, or breakeven on a per-share basis.
Taking out the Ameristar-related expenses and other items, earnings were 11 cents per share, compared with 30 cents per share a year ago.
Revenue increased 64 percent to $418.9 million from $256.2 million as Midwest revenue more than doubled due to contributions from Ameristar.
Analysts polled by FactSet expected earnings of 31 cents per share on revenue of $424.7 million.
STOCK: The shares rose $2.02, or 8.9 percent, to $24.73 in morning trading as the broader markets climbed.
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- Pinnacle Entertainment