“The results weren’t good, but they weren’t as bad as expected,” KeyBanc analyst Dennis Forst said.

Pinnacle owns three Louisiana casinos where combined year over year revenue remained flat in February, better than the 9% slide in January, 7% decline in December and 18% drop in November.

A company spokeswoman commented that Pinnacle owns the only two riverboat operations that posted month over month increases for the month.

Boomtown Bossier Casino reported a 5.8% increase while L’Auberge Du Lac increases by 2.1%.

Shares of PNK climbed 6% during trading today to $9.23. Pinnacle stock has climbed 31% over the past 12 months.

In other Pinnacle news, the casino operator has withdrawn their participation in the JPMorgan Chase & Co Management Access Forum in Las Vegas, although they declined to comment on a reason.

Today, Anthony M. Sanfilippo will take on the role effective immediately as well as join the casino operator’s board of directors.

Sanfilippo joins Pinnacle from Multimedia Games Inc, where he served in similar roles and has also has managed and developed gaming operations in Louisiana, Missouri, Indiana and Nevada.

Sanfilippo has been given options to buy 650,000 shares of the company, the options will vest over five years and have a 10-year term. Today he has announced that he will exercise his option to purchase 125,000 shares at Friday’s closing price of $8.64 per share.

Pinnacle stated that most of Sanfilippo’s compensation will be tied to the company’s future performance.

Last November John Giovenco took over the role as interim CEO after the resignation of Daniel R. Lee following an investigation by the Missouri Gaming Commission for a confrontation with a St. Louis County councilman. Lee was later cleared of wrong doing.

Giovenco will continue to serve on Pinnacle’s board of directors.

Richard J. Goeglein, who had been appointed as interim non-executive chairman, will take the post permanently.

On Wednesday executives representing the casino operator and the Missouri Gaming Commission announced that Pinnacle will voluntarily surrender its gaming license for the President casino on the aging Admiral riverboat, on July 1, 2010.

John V. Giovenco, interim CEO for Las Vegas-based Pinnacle, said in a statement that it was “in the best interests of our shareholders and our company to settle this issue. We intend to focus on maximizing shareholder value at Lumiere Place and our new River City Casino.”

The Gaming Commission agreed to let Pinnacle surrender the license under an agreement that states that Pinnacle would not be considered “unsuitable”, that disciplinary actions would be dropped and that Pinnacle’s other gaming licenses would not be affected, leaving the door open for future bids to be made.

The $357 million riverboat gaming complex features a 90,000 square foot casino, with more than 2,100 slot machines and 55 table games on approximately 56 acres just south of the confluence of the Mississippi River and the River des Peres.

Patrons can also enjoy a variety of restaurants, a bar and a lounge with live music.

“River City represents a major investment in the future of Pinnacle Entertainment, and is one of the largest private investments ever in south St. Louis County,” John Giovenco, Pinnacle’s interim chief executive officer said. “We’re proud to bring the first casino complex to Lemay, which is located in one of the most densely populated parts of the St. Louis metropolitan area. We believe that River City, along with its sister property in downtown St. Louis, Lumiere Place, have brought riverboat gaming to a whole new level and will create significant long-term value for our shareholders, the community and the state of Missouri.”

The River City Casino is Pinnacle’s third venture in St. Louis and is themed after the 1904 World’s Fair; boasting a 90,000 square foot gaming floor with 2,100 slot machines, 55 table games and 5 restaurants.

“River City should be a strong competitor in St. Louis, as its physical attributes, access and location are key positives,” Oppenheimer gaming analyst David Katz told investors after the tour.

Wall Street expressed concerns that the property would be directly competing with its sister casino Lumiere Place, also in St. Louis.

However, Pinnacles executives explained that the properties were designed to complement each other, with the Lumiere Place appealing to an array of customers and included a hotel; River City is a suburban and locals oriented facility and does not include a hotel.

“In general, we and many of the other participants/investors were impressed by the quality of the property,” JP Morgan gaming analyst Joe Greff said in a research note. “One word we heard quite frequently was – beautiful.”

In August the commission told Pinnacle that in order to take measures necessary to repair the Admiral; they would have to reapply for a new gaming license, which has been in high demand as licenses have been capped.

Pinnacle argued that the decision resulted in the Commissions recent vote to revoke the gaming license for the riverboats President Casino, without a proper hearing for “underperforming” financially.

“While neither party fully convinces this court of its position, the confusion regarding what the resolution attempts to accomplish raises concern that this was a contested case without sufficient process,” the court found in a unanimous decision. Judge Victor Howard, who wrote the opinion on behalf of the Missouri Court of Appeals Western District in Kansas City, remanded the dispute back to the commission for “further proceedings appropriate for whatever action affecting Pinnacle’s license and/or hull the Commission decides to take.”

It is unclear if the court’s decision will change the Commissions plans to shut down the St. Louis riverboat casino in July, however sends the matter back to the commission for further review.

A spokesman for Pinnacle Entertainment has said that a request for a hearing was made on Friday to dispute the Missouri Gaming Commission’s unanimous vote to force the closure of the casino by July 1.

The riverboat has returned diminishing profits amid repeated flooding-related closures and increased competition from its sister casino nearby, Pinnacle’s Lumiere Place.

Pinnacle was denied requests to temporarily close the facility to make repairs or replace the aging hull, without giving up its license.

On Monday, a House committee heard legislation proposed by the Mayor aimed at preventing state regulators from revoking licenses for underperformance.

Earlier this month Pinnacle announced that the $357 million casino project would open its doors at 2 p.m. on March 4 pending licensing approval and inspection by gaming regulators.

Pinnacle has also finalized an agreement with City Council and neighboring residents to change the name of a one mile stretch of Carondelet and Weber roads to help promote the casino and “help the public find” them.

Residents at first were opposed to the idea saying that they were unhappy with the idea that their address would be used as gambling advertisements.

However the casino, city council and residents were able to agree to delete the word casino and change the stretch to “River City Boulevard”.

Pinnacle has no plans to change the name of the new extension of Weber that leads into the casino’s site. The extension was built by the city in exchange for $1 million annual payments from the casino into the city’s general revenue fund.

There are no residents along the extension and signs have already been installed reflecting the name “River City Casino Boulevard”

“We think the compromise is a great solution,” said Mack Bradley, spokesman for the casino. “We heard the residents’ concerns and to be frank, we’ve worked very hard to be a good neighbor in Lemay and we’re going to continue to work to be a positive resource for the community.”

Last month the Missouri Gaming Commission voted to revoke the casinos gaming license and force closure by July, citing that the casino has continually underperformed financially.

Pinnacle spent months petitioning the Commission for the rights to temporarily close and move the barge in order to make necessary repairs to the aging riverboats hull, an attempt that had been denied by the commission.

In an attempt to incite a stay for the casino, Missouri lawmakers conducted a hearing yesterday to discuss legislation that would prevent the Commission from revoking gaming licenses for underperformance.

Mack Bradley of Pinnacle Entertainment testified at the hearing saying, “In our view, every licensee in the state is at risk if this bill fails to pass. We think it’s a serious matter for Missouri’s ability to create a stable business environment and to attract outside investment.”

A lobbyist represented the commission and quoted Executive Director Gene McNary as saying “stripping power to impose penalties, suspension or revocation for inadequate declining performance would neuter the commission and in effect negate our ability to regulate Missouri’s gaming industry.”

A vote on the bill is expected at a later date.

According to a regulatory filing, the gaming company will be required to pay rent to the St. Louis County Port Authority in the amount of $2.5 million for the period of May 1, 2009 to March 4, 2010.

As of April 1, 2010, Pinnacle will pay the county annual rent of $4 million or 2.5% of annual adjusted gross receipts.

Pinnacle will open the doors of the $392 million River City Casino at 2 p.m. on March 4, 2010.

Pinnacle also owns and operates Lumiere Place and the President Casino in downtown St. Louis.

Last month, the Missouri Gaming Commission voted to revoke the Presidents gaming license and have gambling operations halted by July.

Pinnacle said they plan to appeal the decision to close the President Casino and have not ruled out legal action against the commission.

“We’re concentrating on operating efficiency and, in particular, effective marketing. We’re evaluating our underperforming and non-strategic assets; reducing corporate overhead costs ; taking a disciplined approach to capital spending; and developing Sugarcane Bay and Baton Rouge in Louisiana.” said interim CEO John Giovenco

As a part of those efforts the gaming company said they would be selling the corporate airplane and work to renegotiate debt.

Pinnacle was able to successfully amend a credit agreement, giving it $375 million of revolving credit and refinance amounts that were outstanding under previous credit agreements.

The new credit facility will mature on March 31, 2014 and has allowed them to draw down $110 million as of Friday.

Other cost cutting measures include the redesign of Sugarcane Bay and Baton Rouge casinos to cut $100 million from construction costs, selling off Atlantic City property, hiring new managers for Boomtown New Orleans and Lumiere Place and consolidating its three Las Vegas offices.

The casino operator lost $242 million for the quarter and recorded $207 million in write downs including $160 million for their abandoned Atlantic City property.

Analysts surveyed by Thomson Reuters forecasted a loss of $0.10 per share; however Pinnacle reported a loss of $0.39 per share, excluding development cost and other one time items.

Revenue fell 5% across the board including gambling, food and beverage, lodging, retail and entertainment to $245 million for the quarter. Analysts predicted revenue of $254.4 million.

The gaming company was however able to reduce its full year loss to $258.3 million or $4.30 per share from $322.6 million or $5.38 per share in 2008 with annual revenue remaining relatively flat at $1.05 billion.

John Giovenco, interim CEO described the quarter as “tough and “disappointing”.

“While the first half of the year was solid, the continuing deterioration of the economy resulted in less visitation and lower play per customer. We started to feel the economic downturn in late summer and we increased our marketing efforts. As a result, we maintained or increased market share in many of our larger markets, but our margins declined. As we enter 2010, we are focused on our commitment to increasing shareholder value.” said Giovenco.

Pending final regulatory approval by the Missouri Gaming Commission the 90,000 square foot casino with more than 2,000 slot machines and 55 table games will open at 2 pm On Thursday March 4, 2010.

The gaming company has made a $357 million cash investment to develop the River City Casino, originally planned to open in the spring.

“We’re pleased to be opening the doors of River City on March 4, less than a month from now,” said John Giovenco, Pinnacle’s interim chief executive officer. “River City will be welcoming guests with a new level of entertainment in south St. Louis County, and generating tax revenues for the county and the State of Missouri. Along with Lumiere Place, its sister property in downtown St. Louis, River City represents a major investment in the future of the St. Louis area.”

Pinnacle has put the 19 acres on the seaside boardwalk up for sale after writing down the property by $160 million in the fourth quarter of 2009.

The land was purchased in 2006 for $270 million, when the gaming company demolished the former Sands Casino to make way for a $1.8 billion gambling resort.

Plans for the development were halted in February 2008 because of problems accessing credit.

Atlantic City gaming revenue has been on a downward spiral for the past three years with a record decrease of 13% last year.

Many have contributed Atlantic City’s loss to neighboring states opening casinos as a way to build their budgets.

Three years ago New York and Pennsylvania permitted slot machines and Pennsylvania has not permitted those casinos to open table games, leading to six of New Jersey’s 11 casinos going bankrupt, restructuring debt or halting development.

Terri Porcara, will join the ranks of Pinnacle later this month as Vice President and General Manager of Lumiere Place.

Porcara will be working with Todd George, Regional Vice President and General Manager of River City to enhance and expand Pinnacle’s overall position in the St. Louis market.

The gaming company has also appointed Patrick J. Browne as Vice President and General Manager of Boomtown New Orleans.

Browne comes to Pinnacle with years of casino industry experience after spending nearly three decades with Harrah’s Entertainment.

“We’re pleased to bring Patrick Browne and Terri Porcaro to the Pinnacle team,” said John V. Giovenco, Pinnacle Entertainment’s Interim Chief Executive Officer. “Patrick brings a wealth of experience in operations and human resources to Boomtown New Orleans. Terri’s extensive background of operating and managing successful riverboat operations and a high-profile Las Vegas resort will be invaluable to Lumiere Place, which features Four Seasons Hotel St. Louis and other unique amenities.”

The gaming company is just a few months away from opening its newest St. Louis casino, River City and approximately six months from being forced to close the President Riverboat casino along the Mississippi River.

City councilman Steve Stenger will introduce the measure to rename the portion of the roads “River City Casino Boulevard” at Tuesday’s meeting.

While Stenger has reassured residents that their situations would be taken into consideration, he stressed that, “We also have to weigh in the impact on the county, the impact of this enterprise to advertise itself.”

Of the five residents that would have to change their home addresses, two are opposed to the switch, one agreed and two haven’t returned their petitions.

In other Pinnacle news, 2009 fourth quarter and full-year financial results will be released on Friday, February 5, 2010 prior to the market opening.

PNK stock opened trading today at $8.15, down $0.08 from this months opening price of $8.23.

While tight credit markets held the gaming company from proceeding with the proposed $250 million development last year, executives told the board that they are in the process of getting clearance for construction on the Mississippi River banks from the U.S. Army Corps of Engineers.

“We are on target,” said Cliff Kortman, executive vice president of Pinnacle.

In October the board agreed to give Pinnacle until April to sign construction contracts for the casino and 100 room land based hotel resort.

The project will be located on more than 550 acres in East Baton Rouge Parish along River Road between Gardere Lane and Bluebonnet Boulevard.

The first phase of the project includes a modern single-deck riverboat casino with approximately 1,500 slot machines and 50 table games.

To be followed by an entertainment venue that will host top-name talent, live music and other attractions, and a 100-guestroom hotel and an array of restaurants and lounges offering diners a sweeping view of the Mississippi River.

The group unanimously voted to pull the license, with the commission’s Executive Director Gene McNary saying the gambling facility has operated at unacceptable levels with revenue falling off 50%.

Pinnacle will appeal the decision and has not ruled out legal action.

They are not alone with that thought, St. Louis Mayor Francis Slay said the city’s lawyers were reviewing their options and were also considering filing a lawsuit to save the boat.

The President casino is located on the ailing St. Louis Admiral riverboat, which is set for a Coast Guard hull inspection in July.

Pinnacle has made several requests to move or repair the vessel, all of which were denied by the commission.

With the license revoked, the commission can now approve one of three other groups who have applied to open casinos elsewhere in the state.

Revenues at the President have dropped since Pinnacle opened Lumiere Place nearby.

Pinnacle is expected to open the River City casino in April.

The Mayor wrote a letter to the Commission on Monday questioning the reasons behind the recommendation and urging them to deny the request.

The letter pointed out that the casino’s closure would cost the residents of St. Louis 241 jobs and $2 million in annual gaming-related taxes.

According to the letter, the Mayor’s recommendation is based solely on a questionable economic theory and not on any alleged misconduct; however he says that “such an arbitrary, unsupportable and illegal recommendation that will hurt so many people is being thrust upon you so quickly, and with minimal transparency and public involvement. It is the kind of action that makes taxpayers mad at government.”

He also questioned if the legally suspect recommendation was an attempt to move the license somewhere else in the state, or an attempt to throw 241 people out of work and cut needed tax revenues with no backup plan, suggesting that a secret plan or no plan at all was very troubling.

The letter continued to reprimand them for throwing up obstacles to repair the aging hull of the President’s 60-year-old Admiral Riverboat then attempting to pull its license for not improving.

The Mayor wrote, “It would be like your local government rejecting a legitimate permit to repair your house, then condemning your house because you didn’t repair it.”

The recommendation is expected to come before the commission on Wednesday.

According to the SEC filing, state regulators consider the aging riverboat to be an “obsolete and underachieving gaming facility” and will recommend the revocation of the casino’s license at the January 27th meeting.

Regulators have informed Pinnacle executives that the recommendation will also include the expectation that business be stopped on July 1, 2010.

Following the notice by the Gaming Commission, Pinnacle filed a petition with the Missouri Court of Appeals on January 22, to seek a stay of the state gambling commission’s proceeding.

Last year the commission blocked attempts by Pinnacle to replace the hull by denying a temporary move of the riverboat and also requests to move the license onto a new boat.

In an effort to qualify for an extension of certification by the American Bureau of Shipping, which is set to expire in July 2010, Pinnacle instead elected to repair the haul in its current location, although this attempt was reported to be costly.

Pinnacle also operates Lumiere Place in St. Louis County and is expected to open its sister casino, River City, in March.