Pinnacle Entertainment Reports 2013 Second Quarter Results

Pinnacle Entertainment Reports 2013 Second Quarter Results

LAS VEGAS, July 25, 2013 (GLOBE NEWSWIRE) -- Pinnacle Entertainment, Inc.
(NYSE:PNK) today reported financial results for the second quarter ended June
30, 2013.

2013 Second Quarter Financial Highlights:

  *Revenues increased by $17 million or 5.7% to $315.3 million, and
    Consolidated Adjusted EBITDA was $72.7 million versus $73.2 million in the
    prior year period. 2013 second quarter Consolidated Adjusted EBITDA
    included $0.4 million of severance expense.
  *The St. Louis segment reported all-time record Adjusted EBITDA and
    Adjusted EBITDA margin of $26.1 million and 26.7%, respectively.
  *Abnormally low gaming hold percentage negatively affected Consolidated
    Adjusted EBITDA in the 2013 second quarter, principally at the Company's
    Lake Charles and Belterra properties. Management estimates Consolidated
    Adjusted EBITDA would have been $4.6 million higher had gaming hold at
    these properties been at normal levels.
  *Loss from continuing operations was $5.2 million versus income of $12.9
    million in the prior year period. 2013 second quarter loss from continuing
    operations included $17.2 million of pre-opening and development expenses,
    principally associated with the Company's planned acquisition of Ameristar
    Casinos, Inc., and $1.9 million of write-downs, reserves and recoveries.
  *Adjusted income per share was $0.21 versus $0.29 in the prior year period.
    GAAP net loss per share was $0.09 versus income per share of $0.19 in the
    prior year period.

Additional Highlights:

  *On July 24, 2013, the Company's planned acquisition of Ameristar received
    regulatory clearance from the Missouri Gaming Commission. The Company has
    now obtained all required state gaming regulatory approvals needed to
    complete the planned acquisition.
  *In June 2013, the Company reached an agreement in principle with the
    Bureau of Competition staff of the Federal Trade Commission on proposed
    divestiture remedies to obtain anti-trust clearance for its planned
    acquisition of Ameristar Casinos, which included a proposed sale of
    Lumiere Place Casino and Hotels and Ameristar's Lake Charles development
    project. The Company anticipates a formal Consent Order detailing the
    terms and conditions of these proposed divestiture remedies and gaining
    anti-trust clearance to complete the acquisition to be approved by the FTC
    in August.
  *The Company entered into a definitive agreement to sell the Ameristar
    Casino Lake Charles development project to Golden Nugget, subject to
    closing conditions and regulatory approvals. Golden Nugget will pay total
    consideration equal to all cash expenditures on the development up until
    the date of closing, and the assumption of all outstanding payables
    related to the project at that time, less a $37 million credit. Golden
    Nugget will complete the development following the closing of the
    transaction. Through June 30, 2013, Ameristar has disclosed that it had
    invested $213.9 million in the Lake Charles project.
  *The Lumiere Place Casino and Hotels sale process is ongoing and the
    Company expects to enter into a definitive agreement for its disposition
    in the 2013 third quarter. In the trailing twelve month period ending June
    30, 2013, the net revenues and Adjusted EBITDA for Pinnacle's St. Louis
    segment were $387 million and $99 million, respectively, and Lumiere Place
    Casino and Hotels contributed 49% and 35%, respectively, to those segment
    results.
  *The Company's planned acquisition of Ameristar remains on track to close
    in August 2013, subject to remaining required regulatory approvals and
    closing conditions.

In the 2013 second quarter, revenues increased by $17 million or 5.7% year
over year to $315.3 million, while Consolidated Adjusted EBITDA was
essentially unchanged year over year at $72.7 million. 2013 second quarter
Consolidated Adjusted EBITDA was negatively affected by $0.4 million of
severance expense, a majority of which is included in the Corporate expenses
segment. Abnormally low gaming hold percentage negatively affected
Consolidated Adjusted EBITDA in the 2013 second quarter, principally at the
Company's Lake Charles and Belterra properties. Management estimates
Consolidated Adjusted EBITDA would have been $4.6 million higher had hold at
these properties been at normal levels.Consolidated Adjusted EBITDA margin
decreased 150 basis points year over year to 23.0%, principally due to
L'Auberge Baton Rouge still being in its operational ramp up period.On a same
store basis, Consolidated Adjusted EBITDA margin declined 50 basis points year
over year to 24%.

Operating income was $23 million in the 2013 second quarter versus $38.8
million in the prior year period.Loss from continuing operations was $5.2
million in the 2013 second quarter versus income of $12.9 million in the prior
year period.Relative to the prior year period, loss from continuing
operations was negatively affected by $17.2 million of pre-opening and
development expenses, principally associated with the Company's planned
acquisition of Ameristar Casinos, $1.9 million of write-downs, reserves and
recoveries, and higher interest expense as a result of the Company no longer
capitalizing interest on its investment in L'Auberge Baton Rouge effective
with the property's opening in September 2012.

Adjusted income per share was $0.21 in the 2013 second quarter versus $0.29 in
the prior year period.GAAP net loss per share was $0.09 in the 2013 second
quarter versus income per share of $0.19 in the prior year period.

                                      

Summary of Second Quarter Results
                                         Three Months Ended
($ in thousands, except per share data)   June 30,
                                         2013               2012
Net revenues                              $ 315,340          $ 298,310
Consolidated Adjusted EBITDA (1)          $ 72,657           $ 73,178
Consolidated Adjusted EBITDA margin (1)   23.0%              24.5%
Income (loss) from continuing operations  $ (5,195)          $ 12,943
Income (loss) from continuing operations  (1.6)%             4.3%
margin
Operating income (2)                      $22,955           $ 38,822
GAAP net income (loss)                    $ (5,107)          $ 11,958
Diluted income (loss) per share           $ (0.09)           $ 0.19
Adjusted income per share(1)              $ 0.21             $ 0.29

(1)For a further description of Consolidated Adjusted EBITDA, Consolidated
Adjusted EBITDA margin, and Adjusted income per share, please see the section
entitled "Non-GAAP Financial Measures" and the reconciliations to the GAAP
equivalent financial measures below.
(2)Operating income in the 2013 second quarter includes $17.2 million in
pre-opening and development costs, principally comprised of legal and advisory
and Ameristar bond consent fee costs related to the Company's planned
acquisition of Ameristar Casinos, versus $4.2 million in the prior year
period, and a $1.9 million net negative impact related to write-downs,
reserves and recoveries versus a net negative impact of $0.8 million in the
prior year period.

Anthony Sanfilippo, Chief Executive Officer of Pinnacle Entertainment,
commented, "Over the past several months, we have made significant progress
toward completing our planned acquisition of Ameristar Casinos and remain on
track to close the transaction in August.Yesterday, the Missouri Gaming
Commission approved the acquisition as well as a resolution that allows us to
divest Lumiere Place and the Four Seasons St. Louis.These approvals marked
the final state gaming regulatory agency approvals needed to complete the
planned acquisition.We are now focused on obtaining anti-trust clearance for
the transaction, and expect a consent order detailing the terms and conditions
of required divestitures in Lake Charles and St. Louis to be approved by the
Federal Trade Commission in August.We have entered into a definitive
agreement to sell the Ameristar Casino Lake Charles development project to
Golden Nugget and are pleased that the consideration we expect to receive will
recuperate a vast majority of the capital invested in the project.In St.
Louis, the Lumiere Place Casino and Hotel and Four Seasons sale process is
also progressing rapidly.

"We have been very pleased with the progress made in our efforts to begin the
integration of our companies, and are confident we can achieve a rapid and
seamless integration.As part of that process, we have spent considerable time
meeting with the leadership of both the Pinnacle and Ameristar properties and
are increasingly excited about the opportunities, scale benefits, and
synergies that will be created by the combination of these two very
complementary asset portfolios.We are confident we can achieve at least $40
million of synergies and efficiencies of scale between the two companies and
hope to meaningfully exceed that target," concluded Mr. Sanfilippo.

2013 Second Quarter Operational Overview

L'Auberge Lake Charles 2013 second quarter revenues decreased by $7.8 million
or 7.8% year over year to $93.1 million, while Adjusted EBITDA decreased by
$4.4 million or 14.6% year over year to $26 million.Adjusted EBITDA margin at
the property decreased by 220 basis points year over year to 27.9%.In the
2013 second quarter, abnormally low gaming hold percentage negatively affected
both net revenues and Adjusted EBITDA.

In the St. Louis segment, revenues decreased by $2.5 million or 2.4% year over
year to $97.9 million in the 2013 second quarter.Adjusted EBITDA increased by
$1.0 million or 4.0% year over year to an all-time record $26.1 million, while
Adjusted EBITDA margin in St. Louis increased 170 basis points year over year
to 26.7% in the 2013 second quarter, also an all-time record.The St. Louis
gaming market experienced generally soft revenue trends during the 2013 second
quarter, which negatively affected Pinnacle's St. Louis segment net
revenues.State gaming control board reported gross gaming revenues in the St.
Louis market declined by 8% versus a decline of 5% for Pinnacle's Lumiere
Place and River City properties on a combined basis.Despite the revenue
softness, cost containment and marketing efficiency permitted the St. Louis
segment to achieve Adjusted EBITDA growth and all-time record Adjusted EBITDA
and margin percentage performance.

Boomtown New Orleans revenues declined by $1.0 million or 3.2% year over year
to $30.7 million in the 2013 second quarter, while Adjusted EBITDA increased
by $0.5 million or 5.1% to $10.5 million.Adjusted EBITDA margin at the
property increased 270 basis points year over year to 34.4%.Significant
progress has been made in stabilizing and improving the operating performance
of the property.In the 2013 second quarter, Boomtown New Orleans produced its
best net revenue, Adjusted EBITDA and margin comparisons since the 2011 third
quarter.The improvement in Boomtown New Orleans financial performance was
driven by increased marketing efficiency, as well as a focus on cost
containment.

L'Auberge Baton Rouge revenue was $36.6 million in the 2013 second quarter,
while Adjusted EBITDA was $5.7 million, an increase of 12% quarter over
quarter.2013 second quarter Adjusted EBITDA margin was 15.7% versus 13.9% in
the 2013 first quarter, an improvement of 180 basis points quarter over
quarter. The local Baton Rouge market experienced revenue softness in the
2013 second quarter, particularly in June. However, L'Auberge Baton Rouge saw
increased visitation and gaming volumes from regional visitors.An improvement
in marketing efficiency and cost controls permitted quarter over quarter
Adjusted EBITDA margin expansion.Moving forward, the Company expects
L'Auberge Baton Rouge to continue to ramp up its revenue performance through
increased regional visitation and high end gaming volumes, while increasing
its efforts to improve marketing and overall operating efficiency and margin
performance.

Belterra's 2013 second quarter revenues declined by $5.8 million or 14.3% year
over year to $34.7 million, while Adjusted EBITDA decreased by $0.8 million or
9.7% year over year to $7.6 million.Adjusted EBITDA margin increased 120
basis points year over year to 22.0%.Belterra's 2013 second quarter net
revenue was negatively affected by lower gaming volumes from the incurrence of
new competition in several of its Ohio feeder markets and abnormally low
gaming hold percentage.Operating expense discipline and increased marketing
efficiency limited the impact of declining revenue on Adjusted EBITDA
performance and permitted year over year EBITDA margin expansion.The
property's newly renovated buffet re-opened in mid-March 2013 and a second
newly renovated food and beverage outlet, Stadium Sports Bar & Grill, opened
in June 2013.

Boomtown Bossier City revenues declined by $1.9 million or 9.5% year over year
to $18.4 million in the 2013 second quarter, while Adjusted EBITDA decreased
by $0.7 million or 14.7% to $3.9 million.Adjusted EBITDA margin at the
property declined by 130 basis points year over year to 21.4% in the 2013
second quarter.The opening of a new competitor in the market in June 2013 and
generally soft revenue performance in the broader Bossier City-Shreveport
gaming market contributed to Boomtown Bossier City's unfavorable revenue,
Adjusted EBITDA and margin comparisons in the quarter.

Corporate overhead expenses increased by $1.2 million or 24.1% year over year
to $6.2 million in the 2013 second quarter.

Ameristar Transaction Financing and Pipeline Project Update

Carlos Ruisanchez, President and Chief Financial Officer of Pinnacle
Entertainment, commented, "Given the progress made on regulatory approvals and
integration planning, we have advanced our plans for financing the Ameristar
acquisition.

"On the growth pipeline, we made significant progress on the River Downs
redevelopment project in the 2013 second quarter.Our plans include
approximately 1,600 video lottery terminals, four food and beverage outlets, a
VIP lounge, over 2,000 parking spaces, and new racing facilities.Construction
of the new gaming entertainment center commenced in the 2013 first quarter
with the placement of foundation pilings, and significant progress was made on
the structure of the casino podium and related food and beverage and
entertainment elements of the project.The project budget remains $209
million, excluding license fees, original acquisition costs and capitalized
interest, and the property is on track to open in the second quarter of
2014.We are very excited about the prospects for this project given its great
location and site access, and proximity to nearby entertainment venues such as
the 22,000-seat River Bend concert center.The property will be an excellent
addition to the dining and entertainment options in metropolitan Cincinnati.

"The expansion of River City in St. Louis remains on budget and is on
schedule.The 1,600 space enclosed parking structure opened in November 2012
and the multi-purpose event center element of the expansion opened this
June.Construction of the 200-room hotel is nearing completion, with an
expected commencement of operations in September 2013.The expansion will
round out the amenity set of River City upon completion of the hotel,"
concluded Mr. Ruisanchez.

In the 2013 first quarter, the Company entered into an amended definitive
agreement to dispose of its land holdings in Atlantic City for total
consideration of approximately $30.6 million, subject to a financing
contingency.The transaction is expected to close by the end of the 2013 third
quarter.

Liquidity and Capital Expenditures

At June 30, 2013 the Company had approximately $86.2 million in cash and cash
equivalents, an estimated $70.0 million of which is used in day-to-day
operations.As of the end of the 2013 second quarter, $20 million was drawn on
the Company's $410 million revolving credit facility and approximately $8.1
million of letters of credit were outstanding.

Capital expenditures totaled approximately $67.4 million during the 2013
second quarter.In the 2013 second quarter, cash expenditures totaled $24.1
million for the River City expansion, $13 million for the River Downs
redevelopment project, and $16 million attributable to the cash payment of
previously accrued expenditures related to L'Auberge Baton Rouge.Excluding
land and capitalized interest costs, approximately $71.8 million of the $82
million budget for the River City expansion project and $23 million of the
$209 million budget for the River Downs redevelopment has been incurred.

Interest Expense

Gross interest expense before capitalized interest was $29.3 million in the
2013 second quarter versus $29.1 million in the prior year period.Capitalized
interest in the 2013 second quarter was $0.8 million versus $6.4 million in
the prior year period.The decrease in capitalized interest in the 2013 second
quarter is attributable to the Company ceasing interest expense capitalization
on L'Auberge Baton Rouge in August 2012 and on its investment in ACDL at the
end of the 2012 fourth quarter.In the 2013 second quarter, the Company
capitalized interest expense on its expenditures related to the River City
expansion and River Downs redevelopment projects.

Pending Acquisition of Ameristar Casinos, Inc.

As previously announced, on December20, 2012, Pinnacle agreed to acquire
Ameristar Casinos, Inc. in an all cash transaction valued at $26.50 per
Ameristar share or total consideration of $2.8 billion including assumed
debt.Ameristar owns and operates casino facilities in St. Charles near St.
Louis, Mo.; Kansas City, Mo.; Council Bluffs, Iowa; Black Hawk, Colo.;
Vicksburg, Miss.; East Chicago, Ind.; and the Jackpot properties in Jackpot,
Nev.

Ameristar and Pinnacle filed the required Hart-Scott-Rodino premerger
notification and report forms on January 11, 2013.Pinnacle has filed
applications for regulatory approvals as required under applicable gaming
laws.

On February 11, 2013 the Company received a request for additional information
and documentary materials (a "Second Request") from the Federal Trade
Commission ("FTC") regarding its proposed acquisition of Ameristar. The
information request was issued under notification requirements of the
Hart-Scott-Rodino Antitrust Improvements Act of 1976. On May 28, 2013, the FTC
filed a civil administrative complaint alleging that the proposed acquisition
would reduce competition and lead to higher prices and lower quality for
customers in the St. Louis, Missouri and Lake Charles, Louisiana areas in
violation of the U.S. antitrust law. On June 17, 2013, Pinnacle publicly
announced that it had reached an agreement in principle with the Bureau of
Competition Staff of the FTC that, subject to negotiation of a consent order,
FTC approval and gaming regulatory approvals, would permit the consummation of
the proposed acquisition. Under the agreement in principle, Pinnacle intends
to sell Ameristar's casino hotel development project in Lake Charles,
Louisiana, and Pinnacle's Lumière Place Casino, HoteLumière and the Four
Seasons Hotel in St. Louis, Missouri, subject to gaming regulatory approvals.
The consummation of the merger is expected to occur in August 2013, subject to
various conditions, including, among others, and reaching definitive agreement
with the FTC on the consent order, subject to any divestitures and other terms
and conditions specified in the consent order.No assurance can be given that
the proposed acquisition will be completed.

Investor Conference Call

Pinnacle Entertainment will hold a conference call for investors today,
Thursday, July 25, 2013, at 8:00 a.m. Eastern Time (5:00 a.m. Pacific Time) to
discuss its 2013 second quarter financial and operating results.Investors may
listen to the call by dialing (706)679-7241.The code to access the
conference call is 13741536.Investors may also listen to the conference call
live over the Internet at www.pnkinc.com.

A replay of the conference call will be available shortly after its conclusion
through August 8, 2013 by dialing (404)537-3406.The code to access the
replay is 13741536.The conference call will also be available for replay at
www.pnkinc.com.

Non-GAAP Financial Measures

Consolidated Adjusted EBITDA, Consolidated Adjusted EBITDA margin, Adjusted
net income (loss), and Adjusted income (loss) per share are non-GAAP
measurements.The Company defines Consolidated Adjusted EBITDA as earnings
before interest income and expense, income taxes, depreciation, amortization,
pre-opening and development expenses, non-cash share-based compensation, asset
impairment costs, write-downs, reserves, recoveries, corporate-level
litigation settlement costs, gain (loss) on sale of certain assets, loss on
early extinguishment of debt, gain (loss) on sale of equity security
investments, income (loss) from equity method investments, non-controlling
interest and discontinued operations.The Company defines Adjusted net income
(loss) as net income (loss) before pre-opening and development expenses, asset
impairment costs, impairment of equity method investment, write-downs,
reserves, recoveries, corporate-level litigation settlement costs, gain (loss)
on sale of certain assets, gain (loss) on early extinguishment of debt, income
(loss) from equity method investment, non-controlling interest and
discontinued operations and adjustment for taxes on such items.The Company
defines Adjusted income (loss) per share as Adjusted net income (loss) divided
by the weighted-average number of shares of the Company's common stock
outstanding.The Company defines Consolidated Adjusted EBITDA margin as
Consolidated Adjusted EBITDA divided by revenues on a consolidated basis.Not
all of the aforementioned benefits and costs occur in each reporting period,
but have been included in the definition based on historical activity.

The Company uses Consolidated Adjusted EBITDA and Consolidated Adjusted EBITDA
margin as relevant and useful measures to compare operating results between
accounting periods.The presentation of Consolidated Adjusted EBITDA has
economic substance because it is used by management as a performance measure
to analyze the performance of its business and is especially relevant in
evaluating large, long-lived casino-hotel projects because it provides a
perspective on the current effects of operating decisions separated from the
substantial, non-operational depreciation charges and financing costs of such
projects.Management eliminates the results from discontinued operations as
they are discontinued.Management also reviews pre-opening and development
expenses separately, as such expenses are also included in total project costs
when assessing budgets and project returns, and because such costs relate to
anticipated future revenues and income.Management believes that Consolidated
Adjusted EBITDA and Adjusted EBITDA are useful measures for investors because
they are indicators of the strength and performance of ongoing business
operations. These calculations are commonly used as a basis for investors,
analysts and credit rating agencies to evaluate and compare operating
performance and value of companies within our industry. Consolidated Adjusted
EBITDA also approximates the measures used in the debt covenants within the
Company's debt agreements.Consolidated Adjusted EBITDA does not include
depreciation or interest expense and therefore does not reflect current or
future capital expenditures or the cost of capital.The Company compensates
for these limitations by using other comparative measures to assist in the
evaluation of operating performance.

Adjusted net income (loss) is presented solely as supplemental disclosure, as
this is one method that management reviews and uses to analyze the performance
of its core operating business.For many of the same reasons mentioned above
relating to Consolidated Adjusted EBITDA, management believes Adjusted net
income (loss) and Adjusted income (loss) per share are useful analytic tools
as they enable management to track the performance of its core casino
operating business separate and apart from factors that do not impact
decisions affecting its operating casino properties, such as impairments of
intangible assets or costs associated with the Company's development
activities.Management believes Adjusted net income (loss) and Adjusted income
(loss) per share are useful to investors since these adjustments provide a
measure of performance that more closely resembles widely used measures of
performance and valuation in the gaming industry.Adjusted net income (loss)
and Adjusted income (loss) per share do not include the costs of the Company's
development activities, certain asset sale gains, or the costs of its
refinancing activities, but the Company compensates for these limitations by
using other comparative measures to assist in evaluating the performance of
its business.

EBITDA measures, such as Consolidated Adjusted EBITDA and Consolidated
Adjusted EBITDA margin, Adjusted net income (loss) and Adjusted income (loss)
per share are not calculated in the same manner by all companies and,
accordingly, may not be an appropriate measure of comparing performance among
different companies.See the attached "supplemental information" tables for a
reconciliation of Consolidated Adjusted EBITDA to Income (loss) from
continuing operations, a reconciliation of GAAP net income to Adjusted net
income (loss), a reconciliation of GAAP income (loss) per share to Adjusted
income (loss) per share and a reconciliation of Consolidated Adjusted EBITDA
margin to Income (loss) from continuing operations margin.

Definition of Adjusted EBITDA and Adjusted EBITDA Margin for Operating
Segments

The Company defines Adjusted EBITDA for each operating segment as earnings
before interest income and expense, income taxes, depreciation, amortization,
pre-opening and development expenses, non-cash share-based compensation, asset
impairment costs, write-downs, reserves, recoveries, gain (loss) on sale of
certain assets, gain (loss) on early extinguishment of debt, gain (loss) on
sale of discontinued operations, and discontinued operations.The Company
defines Adjusted EBITDA margin for each operating segment as Adjusted EBITDA
divided by revenues for such segment.The Company uses Adjusted EBITDA and
Adjusted EBITDA margin to compare operating results among its properties and
between accounting periods.

About Pinnacle Entertainment

Pinnacle Entertainment, Inc. owns and operates seven casinos, located in
Louisiana, Missouri, and Indiana, and a racetrack in Ohio.In addition,
Pinnacle is redeveloping River Downs in Cincinnati, Ohio into a gaming
entertainment facility, owns a minority equity interest in Asian Coast
Development (Canada) Ltd., and holds a majority interest in the racing license
owner, as well as a management contract, for Retama Park Racetrack outside of
San Antonio, Texas.

All statements included in this press release, other than historical
information or statements of historical fact, are "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. These forward-looking statements,
including statements regarding the Company's future operating performance;
future growth; ability to implement strategies to improve revenues and
operating margins at the Company's properties; the transaction between the
Company and Ameristar and the timing and ability to finance and close the
transaction with Ameristar; the execution or completion of the divestitures
required by the Federal Trade Commission ("Commission") in connection with the
Ameristar acquisition; the ability of the Company to continue to meet its
financial and other covenants governing its indebtedness, including in
connection with the Ameristar acquisition and the related required
dispositions; the expected synergies and benefits of a potential combination
of the Company and Ameristar, including the expected accretive effect of the
merger on the Company's financial results and profit; the anticipated benefits
of geographic diversity that would result from the merger and the expected
results of Ameristar's gaming properties, prospective performance and
opportunities; the budgets, completion and opening schedules of the Company's
various projects;the facilities, features and amenities of the Company's
various projects; the ability of the Company to sell or otherwise dispose of
discontinued operations; the ability of the Company to close the transaction
to sell the Company's Atlantic City land holdings, are based on management's
current expectations and are subject to risks, uncertainties and changes in
circumstances that could significantly affect future results. Accordingly,
Pinnacle cautions that the forward-looking statements contained herein are
qualified by important factors and uncertainties that could cause actual
results to differ materially from those reflected by such statements. Such
factors and uncertainties include, but are not limited to: (a) the Company's
business may be sensitive to reductions in consumers' discretionary spending
as a result of downtowns in the economy; (b) the global financial crisis may
have an impact on the Company's business and financial condition in ways that
the Company currently cannot accurately predict; (c) significant competition
in the gaming industry in all of the Company's markets could adversely affect
the Company's revenues and profitability; (d) many factors, including the
escalation of construction costs beyond increments anticipated in its
construction budgets and unexpected construction delays, could prevent the
Company from completing its various projects within the budgets and on time,
including the Boomtown New Orleans hotel project, the River City expansion
project and the River Downs project; (e)the timing to consummate a potential
transaction between the Company and Ameristar may be delayed based on
circumstances beyond Pinnacle's control, including the ability of Pinnacle to
reach a resolution with the Commission; (f) the ability and timing to complete
the dispositions proposed as part of the effort to reach a resolution with the
Commission; (g) the ability and timing to obtain required regulatory approvals
and satisfy or waive other closing conditions; (h) the possibility that the
merger does not close when expected or at all, or that the companies may be
required to modify aspects of the merger to achieve regulatory approval; (i)
the requirement to satisfy closing conditions to the merger as set forth in
the merger agreement; (j) Pinnacle's ability to obtain financing on the terms
expected, or at all;(k) the terms of the Company's credit facility and the
indentures governing its senior and subordinated indebtedness impose operating
and financial restrictions on the Company; (l) the Company faces many risks
associated with its investment in ACDL, which is developing a complex of
integrated resorts in Vietnam, such as ACDL's ability to open the first phase
of the first integrated resort and to raise capital to fund the development of
the phases of the planned resort complex, among other risks; (m) many factors,
including the escalation of construction costs beyond increments anticipated
in construction budgets, could prevent ACDL from completing its Ho Tram
development project within budget and on time and as required by the
conditions of its investment certificate in Vietnam; (n)ACDL will have to
obtain all necessary approvals for completing the Ho Tram development project,
including gaming and regulatory approvals, some of which are beyond its
control; (o) the Company may experience delays in closing the transaction to
sell the Company's Atlantic City land holdings due to circumstances beyond its
control; and (p) other risks, including those as may be detailed from time to
time in the Company's filings with the Securities and Exchange Commission
("SEC"). For more information on the potential factors that could affect the
Company's financial results and business, review the Company's filings with
the SEC, including, but not limited to, its Annual Report on Form 10-K, its
Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K.

Belterra, Boomtown, Casino Magic, Heartland Poker Tour, L'Auberge Lake
Charles, L'Auberge Baton Rouge, Lumière Place, River City, and River Downs are
registered trademarks of Pinnacle Entertainment, Inc.All rights reserved.

Pinnacle Entertainment, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data, unaudited)

                                For the three months ended For the six months
                                 June 30,                 ended June 30,
                                2013          2012         2013      2012
Revenues:                                                          
Gaming                          $271,870      $255,936     $549,054  $515,598
Food and beverage                20,427        19,713       37,835    35,914
Lodging                         10,786        11,050       18,760    19,572
Retail, entertainment and other  12,257        11,611       22,330    20,211
                                315,340       298,310      627,979   591,295
                                                                  
Expenses and other costs:                                          
Gaming                          155,383       143,089      311,592   285,928
Food and beverage                16,876        16,390       32,144    30,962
Lodging                         5,270         5,389        10,160    9,754
Retail, entertainment and other  6,143         6,895        10,341    10,950
General and administrative       62,443        56,524       122,524   111,172
Depreciation and amortization    27,135        26,201       55,137    52,447
Pre-opening and development      17,208        4,212        24,769    6,970
costs
Write-downs, reserves and        1,927         788          2,241     796
recoveries, net
                                292,385       259,488      568,908   508,979
Operating income                 22,955        38,822       59,071    82,316
Interest expense, net            (28,401)      (22,485)     (57,071)  (44,403)
Loss on early extinguishment of  --            --           --        (20,718)
debt
Loss from equity method          --            (1,244)      (92,181)  (2,839)
investment
Income (loss) from continuing    (5,446)       15,093       (90,181)  14,356
operations before income taxes
Income tax benefit (expense)     251           (2,150)      (360)     (1,739)
Income (loss) from continuing    (5,195)       12,943       (90,541)  12,617
operations
Income (loss) from discontinued
operations,                      88            (985)        43        (1,668)
net of income taxes
Net income (loss)                (5,107)       11,958       (90,498)  10,949
Net Loss attributable to         (25)          --           (25)     --
non-controlling interests
Net income (loss) attributable   $(5,082)      $11,958      $(90,473) $10,949
to Pinnacle Entertainment, Inc.
                                                                  
Net income (loss) loss per                                         
common share—basic
Income (loss) from continuing    $(0.09)       $0.21        $(1.55)   $0.20
operations
Income (loss) from discontinued  0.00          (0.02)       0.00      (0.03)
operations, net of income taxes
Net income (loss) per common     $(0.09)       $0.19        $ (1.55)  $0.17
share—basic
                                                                  
Net Income (loss) per common                                       
share—diluted
Income (loss) from continuing    $ (0.09)      $ 0.21       $(1.55)   $0.20
operations
Income (loss) from discontinued  0.00          (0.02)       0.00      (0.03)
operations, net of income taxes
                                                                  
Net income (loss) per common     $ (0.09)      $0.19        $(1.55)   $0.17
share—diluted
                                                                  
Number of shares—basic           58,523        62,536       58,431    62,365
Number of shares—diluted         58,523        62,901       58,431    62,739

                                      


Pinnacle Entertainment, Inc.
Condensed Consolidated Balance Sheets
(In thousands)

                                                June 30,    December 31,
                                               2013        2012
                                                (unaudited)
Assets                                                     
Cash and cash equivalents                       $86,233     $101,792
Other assets, including restricted cash         200,501     272,615
Land, buildings, riverboats and equipment, net  1,735,256   1,695,978
Assets of discontinued operations held for sale 38,609      38,609
Total assets                                    $2,060,599  $2,108,994
                                                          
Liabilities and Stockholders' Equity                       
Liabilities, other than long-term debt          $225,195    $221,376
Long-term debt, including current portion       1,459,482   1,440,501
Total liabilities                               1,684,677   1,661,877
                                                          
Stockholders' equity                            375,922     447,117
Total liabilities and stockholders' equity      $2,060,599  $2,108,994

                                      

Pinnacle Entertainment, Inc.
Supplemental Information
Property Revenues and Adjusted EBITDA,
Reconciliation of Consolidated Adjusted EBITDA to Income (Loss) from
Continuing Operations,
and Reconciliation of Consolidated Adjusted EBITDA Margin
to Income (Loss) from Continuing Operations Margin

(In thousands, unaudited)

                          For the three months        For the six months
                           ended June 30,            ended June 30,
                          2013          2012          2013          2012
Revenues                                                          
L'Auberge Lake Charles     $93,088       $100,918      $183,384      $197,770
St. Louis(a)               97,901        100,359       194,155       200,724
Boomtown New Orleans       30,666        31,675        61,538        64,617
L'Auberge Baton Rouge      36,607        --            73,300        --
Belterra Casino Resort     34,713        40,519        69,572        78,820
Boomtown Bossier City      18,414        20,341        39,371        42,964
Racetrack(b)               3,677         4,468         6,094         6,340
Other                      274           30            565           60
Total Revenues             $315,340      $298,310      $627,979      $591,295
                                                                 
Adjusted EBITDA (Loss) (c)                                        
L'Auberge Lake Charles     $25,953       $30,384       $52,863       $60,074
St. Louis(a)               26,106        25,094        51,061        50,778
Boomtown New Orleans       10,543        10,032        20,793        20,993
L'Auberge Baton Rouge      5,730         --            10,843        --
Belterra Casino Resort     7,628         8,448         13,993        16,465
Boomtown Bossier City      3,934         4,613         9,379         10,544
Racetrack (b)              (990)         (382)         (1,140)       (762)
Other                      (29)          --            (58)          --
                          78,875        78,189        157,734       158,092
Corporate expenses         (6,218)       (5,011)       (11,170)      (10,361)
Consolidated Adjusted      $72,657       $73,178       $146,564      $147,731
EBITDA (c)
                                                                 
Reconciliation to Income (Loss) from Continuing Operations
Consolidated Adjusted      $72,657       $73,178       $146,564      $147,731
EBITDA
Pre-opening and            (17,208)      (4,212)       (24,769)      (6,970)
development costs
Non-cash share-based       (3,432)       (3,155)       (5,346)       (5,202)
compensation
Write-downs, reserves and  (1,927)       (788)         (2,241)       (796)
recoveries, net
Depreciation and           (27,135)      (26,201)      (55,137)      (52,447)
amortization
Loss on equity method      --            (1,244)       (92,181)      (2,839)
investment
Interest expense, net      (28,401)      (22,485)      (57,071)      (44,403)
Loss on early              --            --            --            (20,718)
extinguishment of debt
Income tax benefit         251           (2,150)       (360)         (1,739)
(expense)
Income (loss) from         $(5,195)      $12,943       $(90,541)     $12,617
continuing operations
Consolidated Adjusted      23.0%        24.5%         23.3%         25.0%
EBITDA margin (c)
Income (loss) from
continuing operations      (1.6)%        4.3%          (14.4)%       2.1%
margin

(a)St. Louis includes operating results at Lumière Place, Four Seasons Hotel
& Spa, and River City Casino.
(b)Racetrack includes operating results of River Downs Racetrack and from the
management of operations of Retama Park Racetrack.
(c)See discussion of Non-GAAP Financial Measures above for a detailed
description of Consolidated Adjusted EBITDA and Consolidated Adjusted EBITDA
margin.

                                      

Pinnacle Entertainment, Inc.
Supplemental Information
Reconciliations of GAAP Net Income (Loss) to Adjusted Net Income
and GAAP Net Income (Loss) Per Share to Adjusted Income Per Share
(In thousands, except per share amounts, unaudited)

                                    For the three months  For the six months
                                     ended June 30,        ended June 30,
                                    2013        2012      2013       2012
                                                                  
GAAP net income (loss)               $(5,107)    $11,958   $(90,498)  $10,949
Pre-opening and development costs   17,208      4,212     24,769     6,970
Write-downs, reserves and            1,927       788       2,241      796
recoveries, net
Impairment of equity method          --          --        92,181     --
investment
Loss on early extinguishment of debt --          --        --         20,718
Adjustment for income taxes          (1,453)     583       (1,875)    (1,246)
Loss (income) from discontinued      (88)        985       (43)       1,668
operations, net of income taxes
Adjusted net income (a)              $12,487     $18,526   $26,775    $39,855
                                                                  
GAAP net income (loss) per share     $(0.09)     $0.19     $(1.55)    $0.17
Pre-opening and development costs   0.29        0.07      0.42       0.11
Write-downs, reserves and            0.03        0.01      0.04       0.01
recoveries, net
Impairment of equity method          --          --        1.58       --
investment
Loss on early extinguishment of debt --          --        --         0.33
Adjustment for income taxes          (0.02)      0.00      (0.03)     (0.02)
Loss (income) from discontinued      (0.00)      0.02      (0.00)     0.03
operations, net of income taxes
Adjusted income per share (a)        $0.21       $0.29     $0.46      $0.63
Number of shares – diluted          58,523      62,901    58,431     62,739
                                                                  
(a)See discussion of Non-GAAP Financial Measures above for detailed
descriptions of Adjusted net income and Adjusted income per share.

CONTACT: Investor Relations
         Vincent J. Zahn, CFA
         Vice President, Finance and Investor Relations
         702/541-7777 or investors@pnkmail.com
        
         Media Relations
         Kerry Andersen
         Director, Public Relations
         337/395-7631 or kandersen@pnkmail.com

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