Pinnacle Entertainment swings to 3Q loss

LAS VEGAS - Regional casino operator Pinnacle Entertainment Inc. swung to a loss in the third quarter due to closures caused by hurricanes, increased competition and a weak economy.

Higher pre-opening and development costs at its new Lumiere Place casino complex in St. Louis, and hurricane disruptions at its L'Auberge du Lac and Boomtown New Orleans casinos in Louisiana hurt profits, it said.

The net loss in the quarter to Sept. 30 was $11.8 million, or 20 cents per share, compared with net income of $5 million, or 8 cents per share, a year ago.

Revenue rose 10.6 percent to $262.8 million.

Adjusted net income — which excluded share-based compensation, pre-opening and development costs, write-offs and asset-impairment charges on discontinued operations — fell to $5,000, or less than 1 cent per share. That compares with a profit of $15.7 million, or 26 cents per share, last year.

Analysts surveyed by Thomson Reuters, on average, forecast a loss of 7 cents per share.

Pinnacle Entertainment said plans to build a mega-casino worth as much as $2 billion on the Atlantic City Boardwalk is on "indefinite hold" due to worsening competition and the poor economy.

The Las Vegas-based casino developer cited the continuing tight credit market, which is making it nearly impossible to borrow money, as well as increasing competition in Pennsylvania and Maryland.

Maryland voters this week approved 15,000 slot machines in five locations, which will further eat into Atlantic City's customer base.

The company also said it is not happy that Atlantic City is soliciting plans from developers to build casinos on the former Bader Field airport site, further increasing competition within Atlantic City.

Shares of Pinnacle Entertainment rose 20 cents, or 3.2 percent, to $6.51 in morning trading.

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