Pinnacle Entertainment is celebrating a record turnaround after reporting record revenue throughout the year of 2012. After a few down years following the 2008 financial collapse, the company is happy to see their revenue rising at a rapid rate once again, leading to this record year. The company also announced that they are going to continue to move in on plans that would allow them to acquire Ameristar Casinos later in the year. That would allow the company to own its first properties throughout Nevada, which is a goal that the company has been attempting to achieve for the better part of the last decade.
Pinnacle, a company which currently operates out of five different states at this current time reported a net loss despite the record revenue that they posted. Their net loss was a total of $42.2 million, or $.72 per share. The total revenue that the company was able to generate was $301.6 million for the fourth quarter. The company had earnings of $25 million or $.40 a share and revenue of $275.8 million during the same quarter of last year.
In 2012 as a whole, the companies lost a total of $31.8 million, which comes out to about $.52 per share. Total revenue of $1.2 billion was seen by the company throughout the year, which was nearly a 5% increase over the previous year. Although many analysts tape that the company vastly under perform the expectations that have been set by them, pinnacle attributed many of its gains to record revenue performances.
The company is thought to be acquiring AmeriStar for a total of $869 million. The deal was first hinted at during the month of December, and since that time there has been a bit of a stall in the negotiations between the two companies. With a property in Nevada, Pinnacle would increase the number of properties that they own, and add a very important state in Nevada to their list.
The earnings report had a number of different highlights including the fact that executives say that their due diligence of the deal with AmeriStar currently indicate that the acquisition of the company would be a very good fit for Pinnacle Entertainment , the company that is looking to expand in hopes to become profitable at some point here in the very near future. In the earnings report, the company also said that they are beginning to see some real customer loyalty throughout the Louisiana market, which has been incredibly noticeable during the opening of a few recent properties there in the state.
The company also signed an agreement to sell off all of its current land owned by the company in the Atlantic City area for a total of $30.6 million overall. This was not a choice by the company, and instead was part of a financing contingency that the company had signed in previous years. That land sale is expected to go through near the end of the first quarter of 2013, although no exact date has been placed on the sale. The company also opened a new covered parking area at its River city property in St. Louis, as was reported on the earnings report.