Meadows operator Pinnacle Entertainment reports 3Q results
LAS VEGAS – Pinnacle Entertainment Inc., the operator of The Meadows Racetrack & Casino and 16 other gaming and entertainment properties in nine states, Thursday reported third quarter net revenue of $595.2 million, an increase of $16.6 million or 2.9 percent over the third quarter of 2015.
The company, whose report was for the quarter ending Sept. 30, said its net revenue included a $15.6 million contribution from The Meadows, which it began operating Sept. 9.
The company also reported a loss from continuing operations of $500,000 or 1 cent per share versus income of $13.5 million, or 22 cents per share in the prior year.
The company said its earnings before interest, taxes, depreciation and restructuring or rent costs, a non-GAAP indicator of a company’s performance, was $155.4 million, an increase of $5.6 million or 3.7 percent year over year. Consolidated adjusted EBITDAR includes a $1.5 million contribution from The Meadows.
The EBITDAR reading is significant, since Pinnacle leases all of its facilities from Wyomissing-based Gaming & Leisure Properties, a real estate investment trust focused on gaming properties.
Pinnacle CEO Anthony Sanfilippo said the company continues to see improvement “in many key areas of focus in our business. Table game drop and spend per trip increased at a mid-single digit pace in the 2016 third quarter, particularly within the highest tiers of our database, where both trips and spend levels increased year over year.
He said same-store revenue performance in the third quarter was negatively impacted by severe rain and flooding in Baton Rouge, La., “which reduced visitation to our L’Auberge Baton Rouge business for approximately two weeks in August, as well, as by extensive highway interchange work near Ameristar St. Charles.”
According to Sanfilippo, the initial phase of the integration of The Meadows has gone well
The company, which trades its stock on the NASDAQ exchange, said that under a second $50 million share repurchase authorization announced in August, it has bought 1.66 million shares for $20 million through Nov. 9.