Pinnacle Entertainment Reports 2013 Fourth Quarter and Full Year Financial Results

Pinnacle Entertainment Reports 2013 Fourth Quarter and Full Year Financial
Results

LAS VEGAS, Feb. 12, 2014 (GLOBE NEWSWIRE) -- Pinnacle Entertainment, Inc.
(NYSE:PNK) today reported financial results for the fourth quarter and full
year ended December 31, 2013.

2013 Fourth Quarter Highlights:

  *Net revenues increased by $280.3 million or 110% year over year to $535
    million, and Consolidated Adjusted EBITDA increased by $84 million or
    148.9% year over year to $140.5 million. These results include the
    operations of Ameristar for the entire 2013 fourth quarter.
  *On a same store basis, with the Company's current continuing operations
    applied to both periods, management estimates that 2013 fourth quarter
    EBITDA increased by 2.8% and margins expanded by 118 basis points year
    over year despite a 1.8% decline in net revenues.
  *Management estimates that approximately $26 million of recurring annual
    cost synergies from the Ameristar merger were implemented at the end of
    the 2013 fourth quarter.
  *Income from continuing operations increased by $39.7 million to $8.6
    million from a loss of $31.1 million in the prior year period. 2013 fourth
    quarter income from continuing operations included $7.6 million of
    amortization related to the acquired Ameristar player lists and non-cash
    write-downs of the carrying values of various assets.
  *GAAP net income per share was $0.25 versus a loss per share of $0.72 in
    the prior year period. Adjusted income per share increased by $0.24 to
    $0.31 from $0.07 in the prior year period.

2013 Full Year and Additional Highlights:

  *On August 13, 2013, Pinnacle completed the acquisition of Ameristar
    Casinos, Inc. for $2.8 billion including assumed debt. The transaction
    added eight properties to the Company's portfolio.
  *Full year 2013 net revenues increased by $485 million or 48.4% to $1.5
    billion, and Consolidated Adjusted EBITDA increased by $120.4 million or
    48.1% to $370.7 million. These results include the operations of Ameristar
    for 141 days.
  *On November 22, 2013, the Company completed the sale of its equity
    interests in the entity developing the Ameristar Casino Lake Charles
    project. The Company received approximately $180 million in cash, which
    excludes $35 million of deferred consideration.
  *The sale of Lumiere Place Casino and Hotels for cash consideration of $260
    million remains on track for completion in the first half of 2014. The
    Company began accounting for Lumiere Place Casino and Hotels as a
    discontinued operation in the 2013 third quarter.
  *In January 2014, the Company opened the hiring center for Belterra Park
    Gaming & Entertainment Center in Cincinnati, Ohio and paid the initial $10
    million installment for its video lottery terminal license to the Ohio
    Lottery Commission. Belterra Park's construction budget remains $209
    million, and is scheduled to open on May 1, 2014 pending required
    regulatory approvals.
  *During the 2013 fourth quarter, the Company repaid approximately $230
    million of term loans, principally with proceeds from the divestiture of
    the Ameristar Casino Lake Charles development project, for a net reduction
    of total debt of approximately $116 million after giving effect to
    incremental revolving credit facility drawings during the quarter.

In the 2013 fourth quarter, revenues increased by $280.3 million or 110% to
$535 million, while Consolidated Adjusted EBITDA was $140.5 million, an
increase of $84.0 million or 148.9%, as compared to the same period in 2012.
These results include the operations of Ameristar for the entire 2013 fourth
quarter.

Summary of Fourth Quarter Results

(in thousands, except per share      Three months ended December 31,
data)
                                    2013                 2012
Net revenues                         $535,035             $254,764
Consolidated Adjusted EBITDA (1)     $140,487             $56,445
Consolidated Adjusted EBITDA margin  26.3%                22.2%
(1)
Operating income (2)                 $69,751              $22,913
Income (loss) from continuing        $8,648               $(31,075)
operations
Income (loss) from continuing        1.6%                 (12.2)%
operations margin
GAAP net income (loss)               $15,010              $(42,396)
Diluted net income (loss) per share  $0.25                $(0.72)
Adjusted income per share (1)        $0.31                $0.07

(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 fourth quarter includes $1.2 million in
pre-opening and development costs, principally comprised of pre-opening
expenses associated with the development of Belterra Park and severance costs
stemming from the integration of Ameristar, versus $3.1 million in the prior
year period, and a $3.0 million net negative impact related to write-downs,
reserves and recoveries versus a net negative impact of $0.6 million in the
prior year period.

Operating income was $69.8 million in the 2013 fourth quarter versus $22.9
million in the prior year period.Income from continuing operations increased
by $39.7 million to $8.6 million in the 2013 fourth quarter from a loss of
$31.1 million in the prior year period.2013 fourth quarter income from
continuing operations included $7.6 million of amortization related to the
acquired Ameristar player lists and non-cash write-downs of the carrying
values of various assets.

GAAP net income per share was $0.25 in the 2013 fourth quarter versus a loss
of $0.72 in the prior year period.Adjusted income per share increased by
$0.24 to $0.31 in the 2013 fourth quarter from $0.07 in the prior year period.

Anthony Sanfilippo, Chief Executive Officer of Pinnacle Entertainment,
commented, "The fourth quarter capped a very successful 2013 for Pinnacle
Entertainment, a year that was highlighted by the completion of our
transformational acquisition of Ameristar Casinos.Since closing the
acquisition, we have made substantial progress integrating our businesses.

"We faced the same challenges that others in our industry and other consumer
businesses experienced during the 2013 fourth quarter.Despite this, we
executed very effectively and our Company delivered same store EBITDA growth
through an intense focus on operational efficiency and a realization of
synergies from the Ameristar merger.We made thoughtful adjustments to the
expense structures of our properties, principally through marketing
reinvestment and promotional spending reductions and the elimination of non
value added expenses.On a same store basis, assuming the Company's current
continuing operations are applied to both periods, our 2013 fourth quarter
EBITDA increased by 2.8 percent or approximately $3.8 million and our margins
expanded by 118 basis points year over year.This result was achieved despite
a 1.8 percent or $9.9 million decline in net revenues.We have continued to
prudently manage our operating cost structure in the 2014 first quarter, and
will maintain that discipline throughout 2014.

"Our L'Auberge Baton Rouge property began to ramp up meaningfully in the 2013
fourth quarter.The property is increasingly attracting regional high end
play, all while continuing to build its local guest visitation and market
presence.On the expense side, refinements have been made to the property's
cost structure and its marketing efficiency has improved.These factors have
led to the property's cash flow more than doubling in the 2013 fourth quarter,
with margins exceeding 20 percent.

"At River City in St. Louis, the 2013 fourth quarter was the first full
quarter of operations with its full amenity set.The 200-room hotel and event
center, which was completed in September 2013, has enhanced the property's
entertainment value and its ability to attract and reward its best
guests.Both revenue and cash flow grew in the 2013 fourth quarter, and we
believe the expansion of this facility will allow us to further ramp up the
property's financial performance.

"At Belterra Park Gaming and Entertainment Center, we are progressing rapidly
toward its scheduled May 1, 2014 opening date.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 and Coney Island Amusement Park.The property will be an
excellent addition to the dining and entertainment options in metropolitan
Cincinnati," concluded Mr. Sanfilippo.

2013 Fourth Quarter Operational Overview

Midwest Segment

In the Midwest segment, revenues increased by $196.9 million or 231.1% year
over year to $282.1 million in the 2013 fourth quarter.Adjusted EBITDA
increased by $62.4 million or 298.4% to $83.3 million.Adjusted EBITDA margins
were 29.5%, an increase of 500 basis points year over year.The addition of
Ameristar properties contributed $196.8 million to Midwest segment net
revenues in the 2013 fourth quarter.

In the 2013 fourth quarter, Midwest segment results were negatively affected
by a generally challenging revenue environment in its core gaming
markets.Belterra experienced year over year declines in its key metrics as a
result of a new competitor in Cincinnati, Ohio ramping up its operations.
However, a focus on cost control permitted the property to produce EBITDA
growth and margin expansion during the 2013 fourth quarter.The new competing
facility opened in March 2013.

South Segment

In the South segment, revenues increased by $29.1 million or 17.2% year over
year to $198.3 million in the 2013 fourth quarter.Adjusted EBITDA increased
by $23.2 million or 57.9% to $63.2 million. Adjusted EBITDA margins were
31.9%, an increase of 822 basis points year over year.The addition of an
Ameristar property contributed $25.9 million to South segment net revenues in
the 2013 fourth quarter.

In the 2013 fourth quarter, South segment results were driven by strong
revenue and cash flow performance at the Company's L'Auberge Lake Charles and
L'Auberge Baton Rouge properties.Lake Charles delivered solid revenue, EBITDA
and margin growth in the 2013 fourth quarter through a combination of strong
regional demand trends and cost discipline.L'Auberge Baton Rouge continued to
ramp up its revenue with further penetration of the Baton Rouge gaming market
and increasing high end regional gaming volume. EBITDA and margin performance
at the property was a record in the 2013 fourth quarter, driven by cost
efficiencies and revenue growth.Boomtown Bossier was impacted by the addition
of a new competitor in the Bossier City/Shreveport gaming market in June 2013,
which negatively affected its financial performance.

West Segment

West segment revenues were $52.6 million in the 2013 fourth quarter, and
Adjusted EBITDA was $17.1 million.Segment Adjusted EBITDA margins were
32.6%.Ameristar properties comprised 100% of total West segment revenues in
the 2013 fourth quarter.

Corporate Expenses and Other

Corporate expenses and Other, which is principally comprised of corporate
overhead expenses, as well as the Heartland Poker Tour and Retama Park
management operations, increased by $18.7 million year over year to $23.1
million in the 2013 fourth quarter.The increase in corporate overhead
expenses in the 2013 fourth quarter was driven by the acquisition of Ameristar
and due to the change in allocation methodology for corporate expenses
implemented in the 2013 third quarter.

Divestiture Update

On November 22, 2013, the Company completed the sale of its equity interests
in the entity developing the Ameristar Casino Lake Charles project.At
closing, the Company received approximately $180 million in cash, which
excludes approximately $35 million of deferred consideration.The Company used
the net cash proceeds received at closing to repay approximately $180 million
of aggregate principal amount of its Term Loan B-1 under its Amended and
Restated Credit Agreement.

On August 16, 2013, the Company entered into a definitive agreement to divest
Lumiere Place Casino and Hotels for cash consideration of $260 million. The
divestiture of Lumiere Place Casino and Hotels is being executed pursuant to a
FTC consent order and is expected to be completed in the first half of
2014.The Company began accounting for Lumiere Place Casino and Hotels as a
discontinued operation in the 2013 third quarter.

Ameristar Integration Making Solid Progress

Carlos Ruisanchez, President and Chief Financial Officer of Pinnacle
Entertainment, commented, "Our Company achieved several key integration
objectives during the 2013 fourth quarter.First, we have made big strides in
marrying the cultures of Pinnacle and Ameristar and unifying the Company's key
leaders and team members.Second, we made progress on the integration of our
marketing infrastructure and have begun implementing the best practices we
identified across the entire portfolio.Third, we rationalized the cost
structure of our corporate service center operations, and are also beginning
to enjoy some of the benefits and efficiencies of our larger scale.At the end
of 2013, we estimate that we have implemented approximately $26 million of
recurring annual cost synergies, and we expect to have meaningfully more as we
implement changes in 2014.

"As we look further into 2014, we are focused on keeping our positive momentum
with the integration, andhave several key objectives in front of us.We are
currently in the process of rolling out hotel and database yield management
tools to the legacy Ameristar properties.We expect to relaunch our guest
loyalty program in April 2014 to qualifying guests of both legacy
companies.The relaunch will bring unique and exciting benefits to the members
of the combined Company's player affinity program.These efforts, along with
other operating initiatives, will continue to improve our financial profile.

"On the balance sheet, we continued to demonstrate our commitment to prudently
managing our debt and leverage by deploying asset sale proceeds and cash flow
from operations to debt reduction.We are very enthusiastic about the future
prospects for our Company and value creation opportunities that lie in front
of us," concluded Mr. Ruisanchez.

Liquidity, Capital Expenditures and Interest Expense

Liquidity

At December 31, 2013, the Company had approximately $191.9 million in cash and
cash equivalents.As of December 31, 2013, $493.6 million was drawn on the
Company's $1.0 billion revolving credit facility and approximately $8.6
million of letters of credit were outstanding.Total debt at the end of the
2013 fourth quarter was approximately $4.38 billion.

During the 2013 fourth quarter, the Company repaid approximately $230 million
of term loans, principally with proceeds from the divestiture of the Ameristar
Casino Lake Charles development project, for a net reduction of total debt of
approximately $116 million after giving effect to incremental revolving credit
facility drawings during the quarter.Upon completion of the divestiture of
Lumiere Place Casino & Hotels, the Company plans to use the net proceeds
received in the transaction to reduce outstanding borrowings under its Amended
and Restated Credit Agreement.

Capital Expenditures

Capital expenditures totaled approximately $107.2 million during the 2013
fourth quarter.In the 2013 fourth quarter, cash expenditures totaled $3.1
million for the River City expansion, $27.9 million for the Belterra Park
redevelopment project, and $7.1 million for the Ameristar Lake Charles
development project.Excluding land and capitalized interest costs, the
Company has incurred approximately $80.1 million of the $82 million budget for
the River City expansion project and $92.2 million of the $209 million budget
for the Belterra Park redevelopment.

During 2014, the Company expects to spend between $90 million and $110 million
on capital expenditures associated with its existing operating properties,
corporate initiatives and the Ameristar integration.The Company expects to
incur the remaining expansion capital expenditures for Belterra Park and the
Boomtown New Orleans hotel during 2014. The Company expects to fund capital
expenditures principally with internally generated cash flow.

Interest Expense

Gross interest expense before capitalized interest was $65.6 million in the
2013 fourth quarter, compared to $29.1 million in the prior year period.The
increase in gross interest expense is attributable to the additional debt
incurred to fund the Company's acquisition of Ameristar.Capitalized interest
in the 2013 fourth quarter was $1.1 million versus $2.6 million in the prior
year period.In the 2013 fourth quarter, the Company capitalized interest
expense on its expenditures related to the Belterra Park redevelopment
project, the Ameristar Casino Lake Charles development project, and Boomtown
New Orleans hotel tower.

Investor Conference Call

Pinnacle Entertainment will hold a conference call for investors today,
Wednesday, February 12, 2014, at 10:00 a.m. Eastern Time (7:00 a.m. Pacific
Time) to discuss its 2013 fourth quarter and full year financial and operating
results.Investors may listen to the call by dialing (706)679-7241.The code
to access the conference call is 31970734.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 to all interested parties in
the Events & Presentations section of the Company's Investor Relations website
following its conclusion.The Company's Investor Relations website can be
accessed at http://investors.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 is a useful measure for investors because it is an indicator
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 shareare 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 (loss) 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, inter-company management fees, 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 14 casinos, located in
Colorado, Indiana, Iowa, Louisiana, Mississippi, Missouri and Nevada. In
addition, Belterra Park Gaming & Entertainment Center, in Cincinnati, Ohio,
will open in May 2014. Pinnacle 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 timing and 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 the divestitures; the expected synergies, cost savings
and benefits of the Ameristar transaction, including the expected accretive
effect of the transaction on the Company's financial results and profit; the
anticipated benefits of geographic diversity that would result from the
Ameristar transaction 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, and the
Company's anticipated future capital expenditures; 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) global financial conditions 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 Belterra Park project and the Boomtown New Orleans hotel
project; (e)the ability and timing to complete the divestitures as part of
the effort to reach a resolution with the Commission; (f) the ability and
timing to obtain required regulatory approvals in connection with the
divestitures; (g) the ability and timing of the Company to achieve the
expected synergies, cost savings, and other benefits of the Ameristar
transaction may be affected by many factors, including our ability to
successfully integrate the two companies and reduce costs and expenses;(h)
the Company's ability to obtain future financings on the terms expected, or at
all; (i) 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; and (j) 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.

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

                         - financial tables follow -

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

                          For the three months ended For the year ended
                           December 31,               December 31,
                          2013          2012         2013         2012
                          (Unaudited)               (Unaudited)  
Revenues:                                                       
Gaming                     $479,616    $228,289   $1,327,266 $892,284
Food and beverage          28,629       13,448      78,857      53,474
Lodging                    10,788       5,024       31,297      21,937
Retail, entertainment and  16,002       8,003       50,416      35,141
other
Total revenues             535,035      254,764     1,487,836   1,002,836
Expenses and other costs:                                       
Gaming                     259,027      135,228     733,459     501,354
Food and beverage          25,949       12,379      69,756      47,110
Lodging                    4,690        3,257       14,820      11,624
Retail, entertainment and  6,559        3,947       23,303      19,852
other
General and administrative 101,623      45,161      287,381     181,175
Depreciation and           63,273       28,187      148,456     82,689
amortization
Pre-opening and            1,157        3,064       89,009      21,508
development
Write-downs, reserves and  3,006        628         17,265      829
recoveries, net
Total expenses and other   465,284      231,851     1,383,449   866,141
costs
Operating income           69,751       22,913      104,387     136,695
Interest expense, net      (64,392)     (26,324)    (169,812)   (93,670)
Loss on early              —           —          (30,830)    (20,718)
extinguishment of debt
Loss from equity method    —           (26,574)    (92,181)    (30,780)
investments
Income (loss) from
continuing operations      5,359        (29,985)    (188,436)   (8,473)
before income taxes
Income tax benefit         3,289        (1,090)     55,055      (4,764)
(expense)
Income (loss) from         8,648        (31,075)    (133,381)   (13,237)
continuing operations
Income (loss) from
discontinued operations,   6,347        (11,321)    (122,540)   (18,568)
net of income taxes
Net income (loss)          14,995       (42,396)    (255,921)   (31,805)
Net loss attributable to   (15)         —          (51)        —
non-controlling interest
Net income (loss)
attributable to Pinnacle   $15,010     $(42,396)  $(255,870) $(31,805)
Entertainment, Inc.
Net income (loss) per                                           
common share—basic
Income (loss) from         $0.15       $(0.53)    $(2.27)    $(0.22)
continuing operations
Income (loss) from
discontinued operations,   0.11         (0.19)      (2.09)      (0.30)
net of income taxes
Net income (loss) per      $0.26       $(0.72)    $(4.36)    $(0.52)
common share—basic
Net income (loss) per                                           
common share—diluted
Income (loss) from         $0.14       $(0.53)    $(2.27)    $(0.22)
continuing operations
Income (loss) from
discontinued operations,   0.11         0.19        (2.09)      (0.30)
net of income taxes
Net income (loss) per      $0.25       $(0.72)    $(4.36)    $(0.52)
common share—diluted
                                                               
Number of shares—basic     59,178       58,765      58,707      61,258
Number of shares—diluted   61,120       58,765      58,707      61,258
                                                               

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

                                                    December 31, December 31,
                                                    2013         2012
                                                    (Unaudited)  
ASSETS                                                           
Cash and cash equivalents                            $191,938   $94,800
Other assets, including restricted cash              1,608,425   268,482
Land, buildings, vessels and equipment, net          3,039,874   1,285,871
Assets of discontinued operations held for sale      319,189     459,841
Total assets                                         $5,159,426 $2,108,994
                                                                
LIABILITIES AND STOCKHOLDERS' EQUITY                             
Liabilities, other than long-term debt               $361,618   $196,454
Long-term debt, including current portion            4,380,051   1,440,501
Deferred income taxes                                166,484     3,493
Liabilities of discontinued operations held for sale 26,103      21,429
Total liabilities                                    4,934,256   1,661,877
Total stockholders' equity                           225,170     447,117
Total liabilities and stockholders' equity           $5,159,426 $2,108,994
                                                                

Pinnacle Entertainment, Inc.
Supplemental Information
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 ended    For the year ended
                     December 31,                  December 31,
                    2013           2012           2013          2012
Revenues:                                                     
South (a)            $198,296     $169,207     $748,112    $634,919
Midwest (b)          282,136       85,213        650,853      367,295
West (c)             52,618        —            82,906       —
Total Segment        533,050       254,420       1,481,871    1,002,214
Revenues
Corporate and Other  1,985         344           5,965        622
(d)
Total Revenues       $535,035     $254,764     $1,487,836  $1,002,836
                                                             
Adjusted EBITDA (e):                                          
South (a)            $63,173      $40,001      $213,533    $176,614
Midwest (b)          83,310        20,911        183,736      94,270
West (c)             17,131        —            27,740       —
Segment Adjusted     163,614       60,912        425,009      270,884
EBITDA
Corporate expenses   (23,127)      (4,467)       (54,328)     (20,609)
and Other (d)
Consolidated         $140,487     $56,445      $370,681    $250,275
Adjusted EBITDA (e)
                                                             
Other benefits                                                
(costs):
Depreciation and     $(63,273)    $(28,187)    $(148,456)  $(82,689)
amortization
Pre-opening and      (1,157)       (3,064)       (89,009)     (21,508)
development
Non-cash share-based (3,300)       (1,653)       (11,564)     (8,554)
compensation expense
Write-downs,
reserves and         (3,006)       (628)         (17,265)     (829)
recoveries, net
Interest expense,    (64,392)      (26,324)      (169,812)    (93,670)
net
Loss from equity     —            (26,574)      (92,181)     (30,780)
method investment
Loss on early
extinguishment of    —            —            (30,830)     (20,718)
debt
Income tax benefit   3,289         (1,090)       55,055       (4,764)
(expense)
Income (loss) from
continuing           $8,648       $(31,075)    $(133,381)  $(13,237)
operations
Consolidated
Adjusted EBITDA      26.3%          22.2%          24.9%         25.0%
margin % (e)
Income (loss) from
Continuing           1.6%           (12.2)%        (9.0)%        (1.3)%
Operations margin %

(a) South segment includes:Ameristar Vicksburg, Boomtown Bossier City,
Boomtown New Orleans, L'Auberge Baton Rouge, and L'Auberge Lake Charles.
(b) Midwest segment includes:Ameristar Council Bluffs, Ameristar East
Chicago, Ameristar Kansas City, Ameristar St. Charles, Belterra Casino Resort
& Spa, Belterra Park (formerly River Downs) and River City.
(c) West segment includes Ameristar Black Hawk, Cactus Pete's and the
Horseshu.
(d) Corporate expenses and Other includes corporate expenses, as well as the
results of Heartland Poker Tour and from the management of Retama Park
Racetrack.Corporate expenses and Other for the 2013 third and fourth quarter
reflect a new corporate expense allocation methodology.The historical periods
have not been recast to reflect the change of corporate expense allocation
methodology, as such re-allocations were not deemed material.
(e) 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 ended    For the year ended
                        December 31,                  December 31,
                       2013          2012            2013         2012
GAAP net income (loss)  $15,010     $(42,396)     $(255,870) $(31,805)
Pre-opening and         1,157        3,064          89,009      21,508
development
Write-downs, reserves   3,006        628            17,265      829
and recoveries, net
Impairment of equity    —           26,574         92,181      30,780
method investment
Loss on early           —           —             30,830      20,718
extinguishment of debt
Addition to legal       —           —             3,260       —
reserves
Amortization and        7,575        4,727          10,955      4,727
non-cash write downs(a)
Adjustment for income   (2,027)      426            (64,159)    (679)
taxes
Loss (income) from
discontinued            (6,347)      11,321         122,540     18,568
operations, net of
income taxes
Adjusted net income (b) $18,374     $4,344        $46,011    $64,646
                                                               
GAAP net (loss) income  $0.25       $(0.72)       $(4.36)    $(0.52)
per share
Pre-opening and         0.02         0.05           1.52        0.35
development
Write-downs, reserves   0.05         0.01           0.29        0.01
and recoveries, net
Impairment of equity    —           0.45           1.57        0.50
method investment
Loss on early           —           —             0.53        0.34
extinguishment of debt
Addition to legal       —           —             0.06        —
reserves
Amortization and        0.12         0.08           0.19        0.08
non-cash write downs(a)
Adjustment for income   (0.03)       0.01           (1.09)      (0.01)
taxes
Loss (income) from
discontinued            (0.10)       0.19           2.09        0.30
operations, net of
income taxes
Adjusted income per     $0.31       $0.07         $0.78      $1.05
share (b)
Number of               61,120       58,765         58,707      61,258
shares—diluted

(a) Includes $7.6 million of amortization related to the acquired Ameristar
player lists and non-cash write-downs of the carrying values of various
assets.
(b) 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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