Pinnacle Entertainment (PNK) Surprises Investors
Higher operating margins and strong performance from Lumiere Place helped casino operator Pinnacle Entertainment (PNK: 10.88 -0.64%) post a surprising quarterly profit.
Analysts had expect the gaming company to report a loss of $0.11 per share on sales of $271 million, however Pinnacle reported that earnings had soared to $36.7 million or $0.60 per share compared to $931,000 or $0.02 per share in the first quarter of 2010.
Adjusting for $38.9 million related to the sale of properties in Argentina and Atlantic City, N.J. and an approximately $23.4 million in insurance claim settlements from hurricane Katrina, profit was $0.07 per share for the quarter; Analysts expected a loss of $0.11 per share.
Pinnacle said the Lumiere Place in St. Louis posted strong revenues and “record” adjusted earnings which contributed to the 3.2% revenue increase to $267 million.
“Pinnacle generated solid first quarter operating results which reflect the initial benefits of our heightened focus on achieving operating efficiencies and exercising financial discipline throughout the Company. Our success with these strategies in the first quarter should provide an excellent foundation for further progress throughout the balance of the year,” said Anthony Sanfilippo, president and chief executive officer of Pinnacle Entertainment. “Our operating and growth strategy is to build profitable revenue through the Company’s commitment to a ‘best-in-market’ approach to the guest experience, further operating efficiency improvements and a disciplined view on capital spending and expansion.”
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