July 24, 2014 - 12:44 pm
Pinnacle Entertainment more than doubled the company’s net revenues in the second quarter because of its $2.8 billion acquisition of a rival regional casino operator.
Las Vegas-based Pinnacle said it lost $2.3 million in the quarter than ended June 30, or 4 cents per share. A year ago, the company lost $5.2 million or 9 cents a share. Pinnacle’s net revenue grew 108 percent to $555.2 million.
During a conference call with analysts, Pinnacle CFO Carlos Ruisanchez said soft customer trends in regional gaming markets was continuing into July.
“While so far trends are looking better than the second quarter, the change has not been meaningful,” he said.
Pinnacle’s best performing properties have been Ameristar in East Chicago, Ill., and the company’s two Louisiana L’Auberge resorts in Lake Charles and Baton Rouge, La.
Pinnacle completed its buyout of Ameristar Casinos last fall and has been integrating the properties into the company.
In a statement, Pinnacle CEO Anthony Sanfilippo said the company implemented some $58 million in annual cost savings by the end of the quarter through the Ameristar merger.
“We substantially completed several crucial and arduous integration objectives during the quarter,” Sanfilippo said.
Among the areas of the company merged were human resources, company processes and systems, marketing and finance. Gaming operations and hotel management revenue synergies were being developed.
Pinnacle doesn’t operate a casino in Las Vegas but acquired two casinos in the Northern Nevada community of Jackpot through the buyout.
Shares of Pinnacle fell $1.51, or 6.28 percent, to $22.54 on Thursday on the New York Stock Exchange.
Contact reporter Howard Stutz at firstname.lastname@example.org or 702-477-3871. Follow @howardstutz on Twitter.