LOSSES BESET CASINO FIRM PINNACLE IN TROUBLE.Byline: Jesse Hiestand Staff Writer GLENDALE - Casino operator Pinnacle Entertainment Pinnacle Entertainment Inc. (NYSE: PNK) is a gaming and hospitality company based in Las Vegas, Nevada that was created in 1938. It owns and operates casinos in the United States and Argentina. Inc. warned Wednesday that it expects to lose money this year because of slow business at a new riverboat casino A Riverboat casino is a type of casino unique to several areas of the United States which use a riverboat as a casino. Several states authorized this type of casino to limit the areas where casinos could be constructed. in Indiana and increased competition facing a second casino in Louisiana. The net loss, now estimated at between $2.5 million and $4.5 million, or 10 cents to 17 cents per diluted share, reflects growing pains grow·ing pains pl.n. Pains in the limbs and joints of children or adolescents, frequently occurring at night and often attributed to rapid growth but arising from various unrelated causes. as the company shifts from horse racing horse racing, trials of speed involving two or more horses. It includes races among harnessed horses with one of two particular gaits, among saddled Thoroughbreds (or, less frequently, quarterhorses) on a flat track, or among saddled horses over a turf course with to the casino business, officials said. In the year ending Dec. 31, Pinnacle earned $76.8 million. ``Overall, our numbers will be lower than the prior year but we believe we are now positioned to see improvements as we move forward, particularly in 2002 we should be in a position to be reporting a profit,'' said Bruce Hinckley, chief financial officer. The company formerly known as Hollywood Park Hollywood Park may be several places:
Proceeds of those sales contributed to higher-than-usual earnings in 2000, Hinckley said. On Wednesday, Pinnacle said cash flow this year will be no more than $90 million, compared with the $110 million to $120 million it had suggested to Wall Street on May 1. The company had also anticipated it would make a profit of about $14 million, or 55 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , this year. Instead, losses should continue to mount in the second quarter. For the quarter, the company believes it will lose about $5 million, or 17 cents to 21 cents per share, largely because of difficulties facing its new Belterra Casino Resort riverboat riv·er·boat n. A boat suitable for use on a river. on the Ohio River Ohio River Major river, eastern central U.S. Formed by the confluence of the Allegheny and Monongahela rivers, it flows northwest out of Pennsylvania, and west and southwest to form the state boundaries of Ohio–West Virginia, Ohio-Kentucky, Indiana-Kentucky, and . One problem is that it is a 45 minute drive from Cincinnati, much farther from the city than some competitors, Hinckley said. Business is expected to improve when a Tom Fazio-designed golf course opens Monday. The company's Casino Magic Bossier City Casino in Louisiana, which draws gamblers from the Dallas/Fort Worth area, has been affected by increased competition from new or expanded casinos in the area. Pinnacle is considering a $115 million expansion that would replace the boat, although the project depends on it seeing a 20 percent return on invested cash, Hinckley said. ``The company remains confident that both of these properties will show improvement in the near future and that both markets offer excellent long-term opportunities for the company,'' said Paul Alanis, president and chief executive. |
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