Pinnacle Entertainment Reports 2014 Second Quarter Financial Results

Pinnacle Entertainment Reports 2014 Second Quarter Financial Results

LAS VEGAS, July 24, 2014 (GLOBE NEWSWIRE) -- Pinnacle Entertainment, Inc.
(NYSE:PNK) today reported financial results for the second quarter ended June
30, 2014.

2014 Second Quarter Highlights:

  *Net revenues increased by $287.9 million or 108% year over year to $555.2
    million, and Consolidated Adjusted EBITDA increased by $77.7 million or
    123.8% year over year to $140.6 million. Consolidated Adjusted EBITDA
    margin increased by 181 basis points to 25.3%. These results include the
    operations of Ameristar in the 2014 second quarter, but not the prior year
    period.
  *Consolidated Adjusted EBITDA was negatively impacted by $10.2 million of
    unusual expense and operational items, including $4.5 million related to
    the company-wide rollout of the mychoice player loyalty program to the
    Ameristar-branded properties; $4.3 million from severance expense and
    referendum opposition costs; and $1.4 million from repair costs and lost
    business volume in Vicksburg due to water damage, and lost business volume
    from systems integration related property shutdowns in Missouri. Excluding
    the effect of these unusual expense and operational items, management
    estimates that Consolidated Adjusted EBITDA would have been $150.8
    million.
  *Comparing the Company's current operations in the 2014 second quarter to
    the prior year period on a combined basis including the acquired Ameristar
    properties, and adjusting for the unusual expense and operational events
    noted above, net revenues decreased by $14.4 million or 2.6%, Combined
    Adjusted EBITDA decreased by $4.4 million or 2.9%, and Combined Adjusted
    EBITDA margin was essentially unchanged year over year on a same store
    basis excluding Belterra Park.
  *Management estimates that approximately $58 million of recurring annual
    synergies from the Ameristar merger were implemented by the end of the
    2014 second quarter.
  *Loss from continuing operations decreased by $4.8 million to $2.3 million
    from a loss of $7.1 million in the prior year period. GAAP net loss per
    share was $0.04 versus a loss per share of $0.09 in the prior year period.
    Loss from continuing operations and GAAP net loss in the 2014 second
    quarter were negatively affected by $8.2 million due to a loss on early
    extinguishment of debt and a $2.9 million lease abandonment charge from
    the consolidation of the Company's Las Vegas headquarters.
  *Adjusted income per share increased by $0.24 or 185% to $0.37 from $0.13
    in the prior year period.
  *Since completing the Ameristar acquisition, the Company has retired $662
    million of aggregate principal amount of term loans through June 30, 2014,
    for a net total debt principal reduction of $453 million after giving
    effect to revolving credit facility drawings, primarily to fund Belterra
    Park development, during that time period.

Anthony Sanfilippo, Chief Executive Officer of Pinnacle Entertainment,
commented, "The 2014 second quarter was pivotal for Pinnacle Entertainment. We
substantially completed several crucial and arduous integration objectives
during the quarter, with significant resources invested in IT, marketing and
operational systems integrations. We are pleased to have accomplished these
objectives so quickly into our integration process. In addition, we welcomed
Belterra Park Gaming and Entertainment Center in Cincinnati, Ohio into our
family of properties, an effort that drew on the resources and expertise of
team members across our organization.

"The most significant integration milestone in the 2014 second quarter was the
company-wide rollout of the mychoice player loyalty program. The program now
encompasses our entire 15 property portfolio, and guests of the
Ameristar-branded properties enjoy the distinctive tier benefits that the
program provides as a reward for their loyalty to our gaming entertainment
properties. Since rolling out the program to the Ameristar-branded properties,
we have received very positive feedback from our guests. The early indications
are that the program is having an encouraging effect on the operating metrics
of the Ameristar-branded properties, including improved volume trends across
all tiers of the database, and in particular in the two highest tiers. Our
Owners Club tier at the Ameristar-branded properties produced high single
digit year over year volume growth in the 2014 second quarter. A tremendous
amount of time and resources was invested in this effort, and the
implementation was a success. We believe the mychoice program will drive
revenue improvement at the Ameristar-branded properties over the balance of
2014 by increasing play consolidation, attracting new in-market customers and
generating improved efficiency of our marketing spend at these assets.

"With the mychoice program in place across the entire portfolio, we were able
to make progress on other marketing and IT integration objectives, namely a
universal player loyalty card system. During the 2014 second quarter, we
completed the implementation of a universal player loyalty card system at our
Missouri and Louisiana properties, as well as at Belterra Park and Belterra
Resort. This system allows our guests to seamlessly earn benefits in our
loyalty program throughout our portfolio of branded properties in those
regions. We will continue to expand the number of properties at which our
guests can use their mychoice player loyalty card interchangeably, with the
goal of having a completely universal player loyalty card system encompassing
all 15 properties in 2015."

Summary of Second Quarter Results
                                                         
(in thousands, except per share data) Three months ended June 30,
                                     2014                 2013
Net revenues                          $555,190             $267,257
Consolidated Adjusted EBITDA (1)      $140,553             $62,814
Consolidated Adjusted EBITDA margin   25.3%                23.5%
(1)
Operating income (2)                  $66,827              $17,907
Loss from continuing operations       $(2,317)             $(7,100)
Loss from continuing operations       (0.4)%               (2.7)%
margin
GAAP net loss                         (2,291)              (5,107)
Diluted net loss per share            $(0.04)              $(0.09)
Adjusted income per share (1)         $0.37                $0.13
                                                         
(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 2014 second quarter includes $6.9 million in
pre-opening and development costs, principally comprised of pre-opening
expenses associated with Belterra Park and the integration of Ameristar,
versus $17.2 million in the prior year period, and a $2.6 million net negative
impact related to write-downs, reserves and recoveries, principally due to a
lease abandonment charge related to the consolidation of the Company's Las
Vegas headquarters, versus a net negative impact of $1.8 million in the prior
year period.


In the 2014 second quarter, revenues increased by $287.9 million or 108% to
$555.2 million, while Consolidated Adjusted EBITDA was $140.6 million, an
increase of $77.7 million or 123.8% compared to the same period in 2013.
Consolidated Adjusted EBITDA margin increased by 181 basis points year over
year to 25.3%. These results include the operations of Ameristar in the 2014
second quarter, but not the prior year period.

Consolidated Adjusted EBITDA was negatively impacted by $10.2 million of
unusual expense and operational items, including $4.5 million related to the
company-wide rollout of the mychoice player loyalty program to the
Ameristar-branded properties; $4.3 million from severance expense and
referendum opposition costs; and $1.4 million from repair costs and lost
business volume in Vicksburg due to water damage, and lost business volume
from systems integration related property shutdowns in Missouri. Excluding the
effect of these unusual expense and operational items, management estimates
that Consolidated Adjusted EBITDA would have been $150.8 million.

Comparing the Company's current operations in the 2014 second quarter to the
prior year period on a combined basis including the acquired Ameristar
properties, and adjusting for the unusual expense and operational events noted
above, net revenues decreased by $14.4 million or 2.6%, Combined Adjusted
EBITDA declined by $4.4 million or 2.9%, and Combined Adjusted EBITDA margin
was essentially unchanged year over year on a same store basis excluding
Belterra Park.

Operating income increased by $48.9 million or 273.2% to $66.8 million in the
2014 second quarter versus $17.9 million in the prior year period. Loss from
continuing operations decreased by $4.8 million to $2.3 million in the 2014
second quarter from a loss of $7.1 million in the prior year period. GAAP net
loss per share was $0.04 in the 2014 second quarter versus a loss of $0.09 in
the prior year period. Loss from continuing operations and GAAP net loss in
the 2014 second quarter were negatively affected by $8.2 million due to a loss
on early extinguishment of debt resulting from the pre-payment of term loans
with Lumiere sale proceeds in the quarter and a $2.9 million lease abandonment
charge related to the consolidation of the Company's Las Vegas headquarters.
Adjusted income per share increased by $0.24 or 185% to $0.37 in the 2014
second quarter from $0.13 in the prior year period.

2014 Second Quarter Operational Overview

On the operating performance of the company in the 2014 second quarter, Mr.
Sanfilippo commented, "The 2014 second quarter financial results do not
reflect our best effort. We know our management and the quality portfolio of
properties we own are capable of much better results."

Midwest Segment

In the Midwest segment, revenues increased by $209.3 million or 240.2% year
over year to $296.4 million in the 2014 second quarter. Adjusted EBITDA
increased by $61.2 million or 265.4% to $84.2 million. Adjusted EBITDA margin
was 28.4%, an increase of 200 basis points year over year. The addition of
Ameristar properties contributed $200.4 million to Midwest segment net
revenues in the 2014 second quarter.

In the 2014 second quarter, Midwest segment revenue results were negatively
affected by a generally challenging revenue environment due to persistent
macroeconomic softness, the ramp up of new competition in the Cincinnati, Ohio
gaming market that continues to impact the operations of Belterra Resort, and
systems integration related property shutdowns at the Company's Missouri
properties.

Midwest segment Adjusted EBITDA was negatively impacted by $4.6 million due to
the rollout of the mychoice player loyalty program at the Ameristar-branded
properties in the segment, severance expense, and systems integration related
property shutdowns at the Company's Missouri properties.

On the opening of Belterra Park Gaming and Entertainment Center, Mr.
Sanfilippo commented, "On May 1, 2014, we opened Belterra Park Gaming and
Entertainment Center. We are pleased with the reception of the property and
the overall positive feedback we have received from the guests that have
enjoyed the gaming, dining, racing and entertainment experiences they have at
Belterra Park. We greatly appreciate the commitment of our team members at
Belterra Park in providing memorable experiences to our guests.

"Despite lower than anticipated initial results at the property, Belterra Park
continues to ramp up in July. In addition, the cash non-gaming revenue of the
property has been very encouraging. In the property's partial quarter of
operation, it contributed net revenue of $13.6 million and nearly break even
Adjusted EBITDA to segment results.

"We have focused our efforts on methodically building profitable revenue
through the use of Belterra Park's market-leading amenities, favorable
location, solid surrounding demographics and entertainment options, and by
positioning it as a complement to the unique amenities of its sister property,
Belterra Resort."

South Segment

In the South segment, revenues increased by $25.0 million or 14.0% year over
year to $203.7 million in the 2014 second quarter. Adjusted EBITDA increased
by $15.9 million or 34.4% to $62.0 million. Adjusted EBITDA margin was 30.4%,
an increase of 460 basis points year over year. The addition of Ameristar
Vicksburg contributed $25.7 million to South segment net revenues in the 2014
second quarter.

In the 2014 second 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 net revenue,
Adjusted EBITDA and Adjusted EBITDA margin growth in the 2014 second quarter
through a combination of strong regional demand trends and cost efficiencies.
The property set second quarter records in Adjusted EBITDA, Adjusted EBITDA
margin, cash non-gaming revenue, and table drop. The strong performance of
L'Auberge Lake Charles occurred despite abnormally low table games hold
percentage at the property.

L'Auberge Baton Rouge continued to ramp up its operations and refine its cost
structure in the 2014 second quarter. Adjusted EBITDA and Adjusted EBITDA
margin performance of Baton Rouge were strong, driven by cost and marketing
efficiencies. Boomtown Bossier continues to be negatively impacted by the ramp
up of a new competitor that opened in the Bossier City/Shreveport gaming
market in June 2013.

South segment Adjusted EBITDA was negatively impacted by $1.0 million due to a
charge related to the rollout of the mychoice player loyalty program at
Ameristar Vicksburg, severance expense, and repair expenses and lost business
volumes at the Company's Ameristar Vicksburg property due to water damage that
required the removal of approximately half of the property's hotel rooms from
service for 20 days in June 2014.

West Segment

West segment revenues were $53.7 million in the 2014 second quarter, and
Adjusted EBITDA was $19.1 million. Adjusted EBITDA margin was 35.5%. Ameristar
properties comprised 100% of West segment revenues in the 2014 second quarter.

West segment Adjusted EBITDA was negatively impacted by $1.1 million due to a
charge related to the rollout of the mychoice player loyalty program and
severance expense.

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 $18.3 million year over year to $24.7
million in the 2014 second quarter. The year over year increase in corporate
overhead expenses in the 2014 second 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. Corporate expenses and other
includes $3.6 million of referendum opposition costs and severance expenses.

mychoice Player Loyalty Program Relaunch and Integration Costs

On April 1, 2014 the Company expanded its enriched mychoice guest loyalty
program to encompass the Ameristar-branded properties in its portfolio. The
distinctive mychoice program now spans all 15 of the Company's gaming
entertainment properties, and the loyal guests of those properties enjoy tier
benefits that include trips to Atlantis Paradise Island in the Bahamas, MGM
Resorts Las Vegas resort properties, as well as Royal Caribbean International
Cruises.

The Owners Club is the highest tier of the mychoice player loyalty program and
every Owners Club member is eligible to receive 100 shares of Pinnacle
Entertainment Stock upon acceptance into the Owners Club Stock Program. In
addition, Owners Club members may choose to lease one of four luxury
Mercedes-Benz automobiles.

The enhanced mychoice program also features monthly mycash multipliers,
invitations to exclusive VIP events and priority seating. Members receive
preferred hotel reservations at Pinnacle destination properties such as
L'Auberge Lake Charles, River City and Ameristar Black Hawk.

In connection with the initiation of the Company-wide rollout of the mychoice
player loyalty program at the Ameristar-branded properties, the Company
recorded a charge of $4.5 million in the 2014 second quarter related to tier
benefits provided to its members. The charge relates to tier benefits enjoyed
by members of the program at the Ameristar properties for all of 2014 and a
portion of 2015.

Unusual expense and operational events affected 2014 second quarter
comparability

In the 2014 second quarter, the Company recorded unusual expense items and
incurred several operational events that negatively impacted Consolidated
Adjusted EBITDA and comparability with the prior year period. The table below
details the effect of these unusual expense items and operational events on
the Company's reportable segments, Corporate expenses, and Consolidated
Adjusted EBITDA in the 2014 second quarter. Management believes the detailed
information on unusual expense items and operational events in the table below
is useful to investors to better assess the underlying performance of its
operations during the quarter.

                    Midwest    South     West      Corporate   Consolidated
($ in thousands)     Adj.       Adj.      Adj.      Expenses    Adj.
                     EBITDA     EBITDA    EBITDA                EBITDA
mychoice program     $3,125     $429      $987      $—          $4,541
rollout expenses (1)
Referendum
opposition costs,    555        55        79        3,575       4,264
severance (2)
Vicksburg water
damage, Missouri     879        500       —         —           1,379
system integration
shutdowns (3)
Total effect on 2014 $4,559     $984      $1,066    $3,575      $10,184
Second Quarter
                                                           
(1) During the 2014 second quarter, the Company rolled out its mychoice player
loyalty program to its Ameristar-branded properties.In connection with the
rollout, the Company recorded an aggregate charge of $4.5 million in the 2014
second quarter.The charge reflects the immediate expensing of the estimated
cost to provide benefits to the members of the program in all of 2014 and a
portion of 2015.
(2) Relates to Colorado referendum opposition costs and integration related
severance costs due to operational leadership changes at several properties.
(3) Relates to repair expenses and estimated lost business volume at the
Company's Ameristar Vicksburg property due to water damage that required the
removal of approximately half of the property's hotel rooms from service for
20 days in June, as well as estimated lost business volume due to systems
integration related property shutdowns in Missouri.


Free Cash Flow and Balance Sheet Inflections in the Second Quarter

Carlos Ruisanchez, President and Chief Financial Officer of Pinnacle
Entertainment, commented, "During the 2014 second quarter, we made significant
progress on our balance sheet, with the repayment of $288 million of terms
loans with the proceeds from required asset sales reducing our balance sheet
leverage. Through the 2014 second quarter, we have retired $662 million of
term loans since completing the Ameristar acquisition, for a net total debt
reduction of $453 million after giving effect to incremental revolving credit
facility drawings during that time frame.

"As we progress through the remainder of 2014, our focus remains on achieving
a seamless integration of Ameristar and maximizing the synergies and cash flow
our combined company produces. Through the end of the 2014 second quarter, we
estimate that $58 million of recurring annual synergies have been implemented,
and we will continue to work to drive incremental cost savings and revenue
synergies. On the balance sheet, we will continue the momentum we have built
since completing the Ameristar acquisition, and are committed to using our
strong free cash flow production to repay debt and reduce our leverage
ratios," concluded Mr. Ruisanchez.

Liquidity, Capital Expenditures and Interest Expense

Liquidity

At June 30, 2014, the Company had approximately $166.7 million in cash and
cash equivalents. As of June 30, 2014, approximately $573.6 million was drawn
on the Company's $1.0 billion revolving credit facility and approximately
$12.7 million of letters of credit were outstanding. Total debt at the end of
the 2014 second quarter was approximately $4.1 billion.

During the 2014 second quarter, the Company repaid approximately $288 million
of aggregate principal amount of term loans, principally with the proceeds
from the sale of Lumiere Place Casino and Hotels and the release of a $25
million escrow deposit that was held by the Company in connection with the
Golden Nugget Lake Charles development project. After giving effect to
approximately $42 million of incremental revolving credit facility drawings to
fund capital expenditures and other working capital items, the Company
produced a net reduction of its total debt principal balance of $246 million
during the 2014 second quarter.

Capital Expenditures

Capital expenditures totaled approximately $85 million during the 2014 second
quarter. In the 2014 second quarter, cash expenditures totaled $5 million for
the Boomtown New Orleans hotel project and $37.2 million for Belterra Park
Gaming and Entertainment Center. Excluding land and capitalized interest
costs, the Company has incurred approximately $16.3 million of the $20 million
budget for the Boomtown New Orleans hotel project and $185.4 million of the
$209 million budget for Belterra Park.

The Company is constructing a 150-room hotel at its Boomtown New Orleans
property.The Company expects that the project will remain on budget, but now
expects it to open by the end of 2014 due to construction related delays.

Interest Expense

Gross interest expense before capitalized interest was $62.7 million in the
2014 second quarter, compared to $29.3 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
for second quarter ended 2014 and 2013 was $0.8 million. In the 2014 second
quarter, the Company capitalized interest expense on its expenditures related
to the Belterra Park and the Boomtown New Orleans hotel project. The Company
ceased capitalizing interest expense on the Belterra Park in May 2014.

Divestiture Update

On April 1, 2014, the Company completed the sale of Lumiere Place Casino,
HoteLumiere, the Four Seasons Hotel St. Louis, and related excess land parcels
to a subsidiary of Tropicana Entertainment, Inc. for cash consideration of
$260 million, subject to a net working capital adjustment. The Company used
the proceeds received at closing to repay approximately $260 million of term
loans under its Amended and Restated Credit Agreement.With the completion of
the sale of Lumiere Place Casino and Hotels, the Company has fulfilled the
Federal Trade Commission's asset sale requirements.

Investor Conference Call

Pinnacle Entertainment will hold a conference call for investors today,
Thursday, July 24, 2014, at 9:00 a.m. Eastern Time (6:00 a.m. Pacific Time) to
discuss its 2014 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 27759616.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, Combined
Net Revenues, Combined Consolidated Adjusted EBITDA, 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, finite-lived intangible amortization, significant unusual items,
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, significant unusual items, 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.

The Company defines Combined Net Revenues as revenues less corporate and other
of Pinnacle Entertainment, Inc. and Ameristar Casinos, Inc. assuming that
Ameristar Casinos, Inc. was a part of Pinnacle Entertainment, Inc. from April
1, 2013 through June 30, 2013. The Company defines Combined Adjusted EBITDA as
Consolidated Adjusted EBITDA (as defined above) of Pinnacle Entertainment,
Inc. and Ameristar Casinos, Inc. assuming that Ameristar Casinos, Inc. was a
part of Pinnacle Entertainment, Inc. from April 1, 2013 through June 30, 2013.

Combined Net Revenues and Combined Adjusted EBITDA are being presently solely
as supplemental disclosure.The Company believes it is more meaningful to
compare year-over-year results for Ameristar Casinos, Inc. and Pinnacle
Entertainment, Inc. on a combined basis, which is a non-GAAP formulation that
combines the results for Ameristar Casinos, Inc. and Pinnacle Entertainment,
Inc. Therefore, it includes the results of Ameristar Casinos, Inc. for the
second quarter of 2013.

EBITDA measures, such as Consolidated Adjusted EBITDA and Consolidated
Adjusted EBITDA margin, Combined Net Revenues, Combined Consolidated Adjusted
EBITDA, 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, a reconciliation of Combined Net
Revenues to GAAP net revenues and a reconciliation of Combined Consolidated
Adjusted EBITDA to Income (loss) from continuing operations.

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 15 gaming entertainment
properties, located in Colorado, Indiana, Iowa, Louisiana, Mississippi,
Missouri, Nevada, and Ohio.The Company also 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 ability of the Company to
continue to meet its financial and other covenants governing its indebtedness;
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 ability of the Company to improve
the results of operations at Belterra Park Gaming and Entertainment Center;
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 expected benefits of the Company's marketing
programs and rollout of the mychoice player loyalty program to all of the
Company's properties; 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 Boomtown New Orleans
hotel project; (e) 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;(f)
the Company's ability to obtain future financings on the terms expected, or at
all; (g) 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 (h) 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.

Pinnacle Entertainment, Inc. has filed a registration statement (including a
prospectus) on Form S-3 (File No. 333-195412) in connection with the Owners
Club Stock Program with the Securities and Exchange Commission for the
offering to which this communication relates. Before you invest, you should
read the prospectus in that registration statement and other documents the
issuer has filed with the SEC for more complete information about the issuer
and this offering. You may get these documents for free by visiting EDGAR on
the SEC Web site at www.sec.gov. Alternatively, Pinnacle Entertainment, Inc.
will arrange to send you the prospectus if you request it by calling toll-free
1-877-764-8750.

References in this press release to "Pinnacle Entertainment, Inc.,"
"Pinnacle," "Company," "we," "our" or "us" refer to Pinnacle Entertainment,
Inc. and its subsidiaries, except where stated or the context otherwise
indicates.

Ameristar, Belterra, Boomtown, Casino Magic, Heartland Poker Tour, L'Auberge
Lake Charles, L'Auberge Baton Rouge, 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 For the six months ended
                                 ended June 30,       June 30,
                                2014       2013      2014        2013
                                                              
Revenues:                                                      
Gaming                           $ 493,281  $ 235,829 $ 973,421   $ 476,026
Food and beverage                30,356     14,597    57,969      27,536
Lodging                          13,802     6,074     24,592      10,832
Retail, entertainment and other  17,751     10,757    31,977      19,480
Total revenues                   555,190    267,257   1,087,959   533,874
Expenses and other costs:                                      
Gaming                           266,604    135,088   514,598     270,833
Food and beverage                28,199     12,491    52,911      23,949
Lodging                          6,465      3,180     11,594      6,149
Retail, entertainment and other  6,688      5,618     11,264      9,328
General and administrative       112,148    51,438    212,415     101,239
Depreciation and amortization    58,773     22,496    117,084     45,655
Pre-opening and development      6,907      17,212    10,319      24,765
Write-downs, reserves and        2,579      1,827     3,224       2,129
recoveries, net
Total expenses and other costs   488,363    249,350   933,409     484,047
Operating income                 66,827     17,907    154,550     49,827
Interest expense, net            (62,003)   (28,327)  (128,792)   (56,920)
Loss on early extinguishment of  (8,234)    —         (8,234)     —
debt
Loss from equity method          —          —         —           (92,181)
investments
                                                              
Income (loss) from continuing    (3,410)    (10,420)  17,524      (99,274)
operations before income taxes
Income tax benefit (expense)     1,093      3,320     (1,097)     4,388
Income (loss) from continuing    (2,317)    (7,100)   16,427      (94,886)
operations
Income from discontinued         26         1,993     325         4,388
operations, net of income taxes
Net income (loss)                (2,291)    (5,107)   16,752      (90,498)
Net loss attributable to         (32)       (25)      (36)        (25)
non-controlling interest
                                                              
Net income (loss) attributable   $ (2,259)  $ (5,082) $ 16,788    $ (90,473)
to Pinnacle Entertainment, Inc.
Net income (loss) per common                                   
share—basic
Income (loss) from continuing    $ (0.04)   $ (0.12)  $ 0.28      $ (1.62)
operations
Income from discontinued         —          0.03      —           0.07
operations, net of income taxes
Net income (loss) per common     $ (0.04)   $ (0.09)  $ 0.28      $ (1.55)
share—basic
Net income (loss) per common                                   
share—diluted
Income (loss) from continuing    $ (0.04)   $ (0.12)  $ 0.27      $ (1.62)
operations
Income from discontinued         —          0.03      —           0.07
operations, net of income taxes
Net income (loss) per common     $ (0.04)   $ (0.09)  $ 0.27      $ (1.55)
share—diluted
                                                              
Number of shares—basic           59,593     58,523    59,429      58,431
Number of shares—diluted         59,593     58,523    61,328      58,431
                                                              

                                                               
Pinnacle Entertainment, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
                                                               
                                                    June 30,    December 31,
                                                    2014        2013
                                                    (Unaudited) 
ASSETS                                                          
Cash and cash equivalents                            $ 166,662   $191,938
Other assets, including restricted cash              1,653,285   1,608,425
Land, buildings, vessels and equipment, net          3,068,828   3,036,515
Assets of discontinued operations held for sale      25,596      322,548
Total assets                                         $ 4,914,371 $ 5,159,426
                                                               
LIABILITIES AND STOCKHOLDERS' EQUITY                            
Liabilities, other than long-term debt               $ 378,418   $ 361,618
Long-term debt, including current portion            4,109,562   4,380,051
Deferred income taxes                                167,381     166,484
Liabilities of discontinued operations held for sale 4,346       26,103
Total liabilities                                    4,659,707   4,934,256
Total stockholders' equity                           254,664     225,170
Total liabilities and stockholders' equity           $ 4,914,371 $ 5,159,426
                                                               

                                                              
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      For the six months ended
                         ended June 30,            June 30,
                        2014         2013         2014           2013
Revenues:                                                      
Midwest (a)              $ 296,430    $ 87,129     $ 576,666      $ 174,189
South (b)                203,727      178,775      403,675        357,593
West (c)                 53,671       —            104,325        —
Total Segment Revenues   553,828      265,904      1,084,666      531,782
Corporate and Other (d)  1,362        1,353        3,293          2,092
Total Revenues           $ 555,190    $ 267,257    $ 1,087,959    $ 533,874
                                                              
Adjusted EBITDA (e):                                           
Midwest (a)              $ 84,200     $ 23,045     $ 174,320      $ 45,159
South (b)                62,017       46,160       126,656        93,878
West (c)                 19,052       —            37,350         —
Segment Adjusted EBITDA  165,269      69,205       338,326        139,037
Corporate expenses and   (24,716)     (6,391)      (44,539)       (11,412)
Other (d)
Consolidated Adjusted    $ 140,553    $ 62,814     $ 293,787      $ 127,625
EBITDA (e)
                                                              
Other benefits (costs):                                        
Depreciation and         $ (58,773)   $ (22,496)   $ (117,084)    $ (45,655)
amortization
Pre-opening and          (6,907)      (17,212)     (10,319)       (24,765)
development
Non-cash share-based     (5,467)      (3,372)      (8,610)        (5,249)
compensation expense
Write-downs, reserves    (2,579)      (1,827)      (3,224)        (2,129)
and recoveries, net
Interest expense, net    (62,003)     (28,327)     (128,792)      (56,920)
Loss from equity method  —            —            —              (92,181)
investment
Loss on early            (8,234)      —            (8,234)        —
extinguishment of debt
Income tax benefit       1,093        3,320        (1,097)        4,388
(expense)
Income (loss) from       $ (2,317)    $ (7,100)    $ 16,427       $ (94,886)
continuing operations
Consolidated Adjusted    25.3%        23.5%        27.0%          23.9%
EBITDA margin % (e)
Income (loss) from
Continuing Operations    (0.4)%       (2.7)%       1.5%           (17.8)%
margin %
                                                              
(a) Midwest segment includes:Ameristar Council Bluffs, Ameristar East
Chicago, Ameristar Kansas City, Ameristar St. Charles, Belterra Casino Resort
& Spa, Belterra Park and River City.
(b) South segment includes:Ameristar Vicksburg, Boomtown Bossier City,
Boomtown New Orleans, L'Auberge Baton Rouge, and L'Auberge Lake Charles.
(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 2014 first quarter and 2014
second 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  For the six months ended
                               ended June 30,        June 30,
                              2014       2013       2014        2013
GAAP net income(loss)          $ (2,291)  $ (5,107)  $ 16,752    $ (90,498)
Pre-opening and development    6,907      17,212     10,319      24,765
Write-downs, reserves and      2,579      1,827      3,224       2,129
recoveries, net
Player list amortization (a)   5,155      —          10,253      —
Impairment of equity method    —          —          —           92,181
investment
Loss on early extinguishment   8,234      —          8,234       —
of debt
Severance expense and          4,264      —          4,264       —
referendum opposition costs
mychoice player loyalty        4,541      —          4,541       —
program rollout charge
Adjustment for income taxes    (7,486)    (4,352)    (8,429)     (6,322)
Income(loss) from discontinued
operations, net of income      (26)       (1,993)    (325)       (4,388)
taxes
Adjusted net income (b)        $ 21,877   $ 7,587    $ 48,833    $ 17,867
                                                             
GAAP net income(loss)          $ (0.04)   $ (0.09)   $ 0.27      $ (1.55)
Pre-opening and development    0.12       0.29       0.17        0.42
Write-downs, reserves and      0.04       0.03       0.05        0.04
recoveries, net
Player list amortization (a)   0.09       —          0.17        —
Impairment of equity method    —          —          —           1.58
investment
Loss on early extinguishment   0.14       —          0.13        —
of debt
Severance expense and          0.07       —          0.07        —
referendum opposition costs
mychoice player loyalty        0.08       —          0.07        —
program rollout charge
Adjustment for income taxes    (0.13)     (0.07)     (0.14)      (0.11)
Income(loss) from discontinued
operations, net of income      —          (0.03)     (0.01)      (0.08)
taxes
Adjusted income per share (b)  $ 0.37     $ 0.13     $ 0.78      $ 0.30
Number of shares—diluted       59,593     58,523     61,328      58,431
                                                             
(a) Accelerated amortization related to acquired Ameristar player lists
(b) See discussion of Non-GAAP Financial Measures above for detailed
descriptions of Adjusted net income and Adjusted income per share.
                                                             

2013 Second Quarter Supplemental Financial Information

Although Pinnacle Entertainment did not own Ameristar Casinos, Inc. for the
three month period ending June 30, 2013, the Company believes the financial
data provided below is useful to investors to assess the value this
transaction brings to the Company and its stakeholders.

The following unaudited condensed combined financial information for the three
months ended June 30, 2013 shows the Company's reported results for the 2013
second quarter, the results of Ameristar Casinos stand alone operations for
the period of April 1, 2013 through June 30, 2013, and the combined Company
financial information as if the acquisition of Ameristar was completed on
April 1, 2013.

                                                           
Pinnacle Entertainment, Inc.
Supplemental Information
Combined Net Revenue and Combined Adjusted EBITDA Including the Ameristar
Prior Year Period for the Three Months Ending June 30, 2013
(In thousands, unaudited)
                                                           
                       Pinnacle           Ameristar
                      Entertainment,     Casinos, Inc. As    Combined (b)
                       Inc. As Reported   Reported
                       April 1, 2013      April 1, 2013      April 1, 2013
                      through           through            through
                       June 30, 2013      June 30, 2013       June 30, 2013
Net Revenues:                                               
Midwest                $ 87,129           $ 207,076           $ 294,205
South                  178,775            28,973              207,748
West                   —                  55,239              55,239
Total Segment Revenues 265,904            291,288             557,192
Corporate and Other    1,353              —                   1,353
Total Revenues (b)     $ 267,257          $ 291,288           $ 558,545
                                                           
Adjusted EBITDA:                                            
Midwest                $ 23,045           $ 70,169            $ 93,214
South                  46,160             13,718              59,878
West                   —                  20,121              20,121
Segment Adjusted       69,205             104,008             173,213
EBITDA
Corporate Expenses and (6,391)            (12,145)            (18,536)
Other (a)
Combined Adjusted      $ 62,814           $ 91,863            $ 154,677
EBITDA (b)
Combined Adjusted      23.5%              31.5%               27.7%
EBITDA margin %
                                                           
(a) Ameristar predecessor period corporate expenses include all costs of the
legacy Company's corporate operations.
(b) See discussion of Non-GAAP financial measures for a detailed description
of Consolidated Adjusted EBITDA, Combined Net Revenues and Combined Adjusted
EBITDA.
                                                           

                                                   
Pinnacle Entertainment, Inc.
Supplemental Information
Reconciliation of Combined Adjusted EBITDA
to Loss from Continuing Operations
(In thousands, unaudited)
                                                   
                                                   Combined
                                                   For the three months ended
                                                    June 30, 2013
                                                   As if acquisition was
                                                    completed on April 1, 2013
Combined Adjusted EBITDA (a)                        $ 154,677
                                                   
Ameristar April 1, 2013 through June 30, 2013 Adj.  (91,863)
EBITDA
Depreciation and amortization                       (22,496)
Pre-opening and development costs                   (17,212)
Non-cash share-based compensation expense           (3,372)
Write-downs, reserves and recoveries, net           (1,827)
Interest expense, net                               (28,327)
Income tax benefit                                  3,320
Loss from continuing operations                     $ (7,100)
                                                   
(a) Combined Net Revenues and Combined Adjusted EBITDA.

CONTACT: Investor Relations
         Vincent J. Zahn, CFA
         Vice President, Finance, Investor Relations & Treasury
         702/541-7777 or investors@pnkmail.com
        
         Media Relations
         Roxann Kinkade, APR
         Director, Media Relations and Public Affairs
         816/414-7007 or rkinkade@pnkmail.com

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