þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 95-3667491 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o | |||
(Do not check if a smaller reporting company) |
For the three months | For the six months | |||||||||||||||
ended June 30, | ended June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Revenues: |
||||||||||||||||
Gaming |
$ | 236,098 | $ | 217,398 | $ | 466,864 | $ | 440,689 | ||||||||
Food and beverage |
17,801 | 15,559 | 33,087 | 29,415 | ||||||||||||
Lodging |
10,233 | 9,952 | 18,631 | 18,223 | ||||||||||||
Retail, entertainment and other |
9,437 | 9,399 | 17,546 | 17,215 | ||||||||||||
273,569 | 252,308 | 536,128 | 505,542 | |||||||||||||
Expenses and other costs: |
||||||||||||||||
Gaming |
135,558 | 128,996 | 265,391 | 256,033 | ||||||||||||
Food and beverage |
18,137 | 14,847 | 33,845 | 28,761 | ||||||||||||
Lodging |
5,848 | 6,025 | 11,046 | 11,651 | ||||||||||||
Retail, entertainment and other |
5,841 | 5,495 | 10,409 | 9,749 | ||||||||||||
General and administrative |
60,895 | 55,450 | 115,484 | 109,608 | ||||||||||||
Depreciation and amortization |
29,345 | 24,834 | 55,234 | 49,566 | ||||||||||||
Pre-opening and development costs |
2,086 | 4,061 | 10,970 | 6,988 | ||||||||||||
Impairment of indefinite-lived intangible assets |
11,500 | | 11,500 | | ||||||||||||
Impairment of land and construction costs |
18,391 | | 18,391 | | ||||||||||||
Write-downs, reserves and recoveries, net |
1,657 | 304 | (4,378 | ) | 755 | |||||||||||
289,258 | 240,012 | 527,892 | 473,111 | |||||||||||||
Operating income (loss) |
(15,689 | ) | 12,296 | 8,236 | 32,431 | |||||||||||
Interest expense, net of capitalized interest |
(27,417 | ) | (15,915 | ) | (48,369 | ) | (32,490 | ) | ||||||||
Gain on sale of equity securities |
| 12,914 | | 12,914 | ||||||||||||
Loss on early extinguishment of debt |
(434 | ) | | (1,852 | ) | | ||||||||||
Other non-operating income |
132 | 63 | 159 | 148 | ||||||||||||
Income (loss) from continuing operations before income taxes |
(43,408 | ) | 9,358 | (41,826 | ) | 13,003 | ||||||||||
Income tax (expense) benefit |
1,844 | (382 | ) | 2,051 | (561 | ) | ||||||||||
Income (loss) from continuing operations |
(41,564 | ) | 8,976 | (39,775 | ) | 12,442 | ||||||||||
Income (loss) from discontinued operations, net of income taxes |
(7,750 | ) | (4,268 | ) | 27,204 | (6,803 | ) | |||||||||
Net income (loss) |
$ | (49,314 | ) | $ | 4,708 | $ | (12,571 | ) | $ | 5,639 | ||||||
Net income (loss) per common sharebasic |
||||||||||||||||
Income (loss) from continuing operations |
$ | (0.68 | ) | $ | 0.15 | $ | (0.66 | ) | $ | 0.20 | ||||||
Income (loss) from discontinued operations, net of income taxes |
(0.13 | ) | (0.07 | ) | 0.45 | (0.11 | ) | |||||||||
Net income (loss) per common sharebasic |
$ | (0.81 | ) | $ | 0.08 | $ | (0.21 | ) | $ | 0.09 | ||||||
Net income (loss) per common sharediluted |
||||||||||||||||
Income (loss) from continuing operations |
$ | (0.68 | ) | $ | 0.15 | $ | (0.66 | ) | $ | 0.20 | ||||||
Income (loss) from discontinued operations, net of income taxes |
(0.13 | ) | (0.07 | ) | 0.45 | (0.11 | ) | |||||||||
Net income (loss) per common sharediluted |
$ | (0.81 | ) | $ | 0.08 | $ | (0.21 | ) | $ | 0.09 | ||||||
Number of sharesbasic |
60,718 | 60,064 | 60,414 | 60,036 | ||||||||||||
Number of sharesdiluted |
60,718 | 60,851 | 60,414 | 61,331 |
3
June 30, 2010 | December 31, 2009 | |||||||
(Unaudited) | ||||||||
(in thousands, except share data) | ||||||||
ASSETS |
||||||||
Current Assets: |
||||||||
Cash and cash equivalents |
$ | 204,301 | $ | 123,431 | ||||
Accounts receivable, net of allowance for doubtful accounts of $10,318 and $12,556 |
24,852 | 13,756 | ||||||
Inventories |
8,018 | 6,313 | ||||||
Prepaid expenses and other assets |
21,064 | 15,412 | ||||||
Assets of discontinued operations held for sale |
65,792 | 96,403 | ||||||
Total current assets |
324,027 | 255,315 | ||||||
Restricted cash |
6,612 | 7,149 | ||||||
Land, buildings,
riverboats and equipment: (Note 1)
|
||||||||
Land and land improvements |
271,020 | 210,810 | ||||||
Buildings, riverboats and improvements |
1,285,252 | 1,070,812 | ||||||
Furniture, fixtures and equipment |
467,382 | 412,159 | ||||||
Construction in progress |
10,789 | 304,353 | ||||||
2,034,443 | 1,998,134 | |||||||
Less: accumulated depreciation |
(546,419 | ) | (498,159 | ) | ||||
1,488,024 | 1,499,975 | |||||||
Assets held for sale |
| 1,661 | ||||||
Goodwill |
16,742 | 16,742 | ||||||
Intangible assets, net (Note 1) |
18,516 | 30,017 | ||||||
Other assets, net |
73,102 | 29,620 | ||||||
Deferred taxes- non current |
3,377 | 3,377 | ||||||
Total assets |
$ | 1,930,400 | $ | 1,843,856 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current Liabilities: |
||||||||
Accounts payable |
$ | 46,971 | $ | 71,987 | ||||
Accrued interest |
22,659 | 21,267 | ||||||
Accrued compensation |
40,263 | 41,077 | ||||||
Accrued taxes |
21,560 | 17,217 | ||||||
Other accrued liabilities |
55,060 | 49,922 | ||||||
Deferred income taxes |
1,274 | 1,274 | ||||||
Current portion of long-term debt (Note 2) |
92 | 88 | ||||||
Liabilities of discontinued operations held for sale |
13,734 | 36,754 | ||||||
Total current liabilities |
201,613 | 239,586 | ||||||
Long-term debt less current portion (Note 2) |
1,176,032 | 1,063,283 | ||||||
Other long-term liabilities |
42,252 | 46,578 | ||||||
Total liabilities |
1,419,897 | 1,349,447 | ||||||
Commitments and contingencies (Note 7) |
||||||||
Stockholders Equity |
||||||||
Preferred stock$1.00 par value, 250,000 shares authorized, none issued or outstanding |
| | ||||||
Common stock$0.10 par value, 61,061,097 and 60,079,686 shares outstanding, net of treasury shares |
6,307 | 6,209 | ||||||
Additional paid in capital |
1,025,478 | 1,014,233 | ||||||
Retained deficit |
(500,950 | ) | (488,379 | ) | ||||
Accumulated other comprehensive loss |
(242 | ) | (17,564 | ) | ||||
Treasury stock, at cost, for both periods 2,008,986 of treasury shares |
(20,090 | ) | (20,090 | ) | ||||
Total stockholders equity |
510,503 | 494,409 | ||||||
$ | 1,930,400 | $ | 1,843,856 | |||||
4
For the six months | ||||||||
ended June 30, | ||||||||
2010 | 2009 | |||||||
(in thousands) | ||||||||
Cash flows from operating activities: |
||||||||
Net income (loss) |
$ | (12,571 | ) | $ | 5,639 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
56,950 | 52,386 | ||||||
Loss on disposal of assets |
1,669 | 345 | ||||||
Impairment of indefinite-lived intangible assets |
11,500 | | ||||||
Impairment of land and construction costs |
18,391 | | ||||||
Impairment of buildings, riverboats, and equipment |
3,435 | 346 | ||||||
Gain on sale of equity securities |
| (12,914 | ) | |||||
Provision for bad debts |
447 | 1,410 | ||||||
Amortization of debt issuance costs |
3,552 | 2,302 | ||||||
Share-based compensation expense |
3,523 | 7,694 | ||||||
Change in accrued taxes |
5,282 | 4,789 | ||||||
Changes in operating assets and liabilities: |
||||||||
Receivables |
304 | 1,083 | ||||||
Prepaid expenses and other |
(7,976 | ) | (10,209 | ) | ||||
Other long-term assets |
(7,184 | ) | 1,880 | |||||
Accounts payable |
(14,334 | ) | (5,125 | ) | ||||
Accrued compensation |
222 | (770 | ) | |||||
Accrued interest |
1,392 | (40 | ) | |||||
Other accrued liabilities |
4,650 | (1,103 | ) | |||||
Other long-term liabilities |
(19,335 | ) | 242 | |||||
Net cash provided by operating activities |
49,917 | 47,955 | ||||||
Cash flows from investing activities: |
||||||||
Capital expenditures |
(93,417 | ) | (84,193 | ) | ||||
Change in restricted cash |
790 | (235 | ) | |||||
Proceeds from sale of equity securities |
| 23,674 | ||||||
Proceeds from sale of property and equipment |
13,595 | 368 | ||||||
Baton Rouge escrow deposit |
(25,000 | ) | | |||||
Net proceeds from sale of discontinued operations |
25,094 | | ||||||
Net cash used in investing activities |
(78,938 | ) | (60,386 | ) | ||||
Cash flows from financing activities: |
||||||||
Borrowings under credit facility |
165,379 | 57,225 | ||||||
Repayments under credit facility |
(202,298 | ) | (25,991 | ) | ||||
Proceeds from issuance of 8.75% Notes |
350,000 | | ||||||
Repayment of 8.25% Notes |
(200,000 | ) | | |||||
Payments on other secured and unsecured notes payable |
(9 | ) | (44 | ) | ||||
Proceeds from common stock options exercised |
6,519 | 455 | ||||||
Proceeds from issuance of common stock |
1,166 | | ||||||
Debt issuance and other financing costs |
(15,005 | ) | (605 | ) | ||||
Net cash provided by financing activities |
105,752 | 31,040 | ||||||
Effect of exchange rate changes on cash and cash equivalents |
(379 | ) | (302 | ) | ||||
Increase in cash and cash equivalents |
76,352 | 18,307 | ||||||
Cash and cash equivalents at the beginning of the period |
129,576 | 115,712 | ||||||
Cash and cash equivalents at the end of the period |
$ | 205,928 | $ | 134,019 | ||||
Supplemental Cash Flow Information: |
||||||||
Cash paid for interest, net of amounts capitalized |
$ | 43,455 | $ | 30,500 | ||||
Cash payments related to income taxes, net |
2,929 | 1,350 | ||||||
Increase (decrease) in construction related deposits and liabilities |
(15,608 | ) | 9,942 |
5
6
| Level 1: Quoted market prices in active markets for identical assets or liabilities. |
| Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. |
| Level 3: Unobservable inputs that are not corroborated by market data. |
For the three months ended | For the six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(in millions) | ||||||||||||||||
Depreciation expense |
$ | 29.3 | $ | 24.8 | $ | 55.2 | $ | 49.6 | ||||||||
Capitalized interest |
$ | | $ | 2.7 | $ | 3.5 | $ | 4.9 |
7
For the three months ended | For the six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(in millions) | ||||||||||||||||
Gaming taxes |
$ | 71.0 | $ | 64.8 | $ | 139.0 | $ | 131.0 |
For the three months ended | For the six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(in millions) | ||||||||||||||||
River City (a) |
$ | 1.2 | $ | 1.6 | $ | 9.4 | $ | 2.8 | ||||||||
Baton Rouge |
0.2 | 1.6 | 0.4 | 2.7 | ||||||||||||
Sugarcane Bay (b) |
0.6 | 0.6 | 1.1 | 1.2 | ||||||||||||
Other |
0.1 | 0.2 | 0.1 | 0.3 | ||||||||||||
Total pre-opening and development costs |
$ | 2.1 | $ | 4.0 | $ | 11.0 | $ | 7.0 | ||||||||
(a) | Pre-opening expenses include $0.7 million for non-cash straight-lined rent accruals under a lease agreement for the six months ended June 30, 2010, and there were no rent accrual charges in the three months ended June 30, 2010, as River City opened in March 2010. Non-cash straight-lined rent accruals were $1.0 million and $1.9 million for three and six months ended June 30, 2009, respectively. | |
(b) | Sugarcane Bay development expenses are costs associated with the process of ending the project. |
For the three months ended | For the six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(in millions) | ||||||||||||||||
Net income (loss) |
$ | (49.3 | ) | $ | 4.7 | $ | (12.6 | ) | $ | 5.6 | ||||||
Post-retirement plan benefit obligation,
net of income taxes (a) |
0.1 | | 0.2 | 0.8 | ||||||||||||
Foreign currency translation gain (loss) (b) |
17.4 | (0.4 | ) | 17.1 | (2.1 | ) | ||||||||||
Comprehensive income (loss) |
$ | (31.8 | ) | $ | 4.3 | $ | 4.7 | $ | 4.3 | |||||||
(a) | Included in the balance are benefit obligations related to both the executive deferred compensation plan and directors health and medical plan. | |
(b) | On June 30, 2010, we completed the sale of our Argentina operations. |
8
June 30, | December 31, | |||||||
2010 | 2009 | |||||||
(in millions) | ||||||||
Senior Secured Credit Facility |
$ | | $ | 36.9 | ||||
8.625% Senior Notes due 2017 |
444.2 | 443.9 | ||||||
8.25% Senior Subordinated Notes due 2012 |
| 200.9 | ||||||
7.50% Senior Subordinated Notes due 2015 |
381.1 | 380.8 | ||||||
8.75% Senior Subordinated Notes due 2020 |
350.0 | | ||||||
Other secured and unsecured notes payable |
0.8 | 0.9 | ||||||
1,176.1 | 1,063.4 | |||||||
Less current maturities |
(0.1 | ) | (0.1 | ) | ||||
$ | 1,176.0 | $ | 1,063.3 | |||||
9
For the three months ended | For the six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(in millions) | ||||||||||||||||
Interest expense before capitalization of interest |
$ | 27.4 | $ | 18.6 | $ | 51.9 | $ | 37.4 | ||||||||
Less: capitalized interest |
| (2.7 | ) | (3.5 | ) | (4.9 | ) | |||||||||
Total interest expense, net of capitalized interest |
$ | 27.4 | $ | 15.9 | $ | 48.4 | $ | 32.5 | ||||||||
For the three months ended | For the six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(in millions) | ||||||||||||||||
Share-based compensation expense |
$ | 2.1 | $ | 5.3 | $ | 3.5 | $ | 7.5 |
10
For the three months ended | For the six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(in millions) | ||||||||||||||||
Cash received from exercise of stock options |
$ | 6.5 | $ | 0.1 | $ | 6.5 | $ | 0.5 |
Number of | Weighted Average | |||||||
Stock Options | Exercise Price | |||||||
Options outstanding at January 1, 2010 |
6,342,007 | $ | 14.56 | |||||
Granted |
1,523,000 | $ | 9.37 | |||||
Exercised |
(846,411 | ) | $ | 7.80 | ||||
Cancelled, Forfeited |
(727,158 | ) | $ | 18.65 | ||||
Options outstanding at June 30, 2010 |
6,291,438 | $ | 13.74 | |||||
Vested or expected to vest at a point in the future as of June 30, 2010 |
6,092,502 | |||||||
Options exercisable at June 30, 2010 |
3,951,013 | $ | 14.79 | |||||
Weighted-average value per granted option calculated using the
Black-Scholes option-pricing model for options granted during the six
months ended June 30, 2010 |
$ | 5.74 |
For the three months ended | For the six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(in millions) | ||||||||||||||||
Impairment of assets |
$ | 0.5 | $ | 0.2 | $ | 0.5 | $ | 0.4 | ||||||||
Loss on disposal of assets |
1.2 | 0.1 | 1.6 | 0.4 | ||||||||||||
Legal settlement recoveries |
| | (6.5 | ) | | |||||||||||
Write-downs, reserves and recoveries, net |
$ | 1.7 | $ | 0.3 | $ | (4.4 | ) | $ | 0.8 | |||||||
11
12
For the three months ended | For the six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(in millions) | ||||||||||||||||
Revenues |
$ | 13.5 | $ | 13.9 | $ | 28.5 | $ | 29.7 | ||||||||
Operating loss |
(3.9 | ) | (2.0 | ) | (9.7 | ) | (3.7 | ) | ||||||||
Non-operating income (loss) |
(0.2 | ) | (0.2 | ) | 41.5 | (0.2 | ) | |||||||||
Income (loss) before income taxes |
(4.1 | ) | (2.2 | ) | 31.8 | (3.9 | ) | |||||||||
Income tax expense |
(3.7 | ) | (2.1 | ) | (4.6 | ) | (2.9 | ) | ||||||||
Income (loss) from discontinued operations |
$ | (7.8 | ) | $ | (4.3 | ) | $ | 27.2 | $ | (6.8 | ) | |||||
June 30, | December 31, | |||||||
2010 | 2009 | |||||||
(in millions) | ||||||||
Assets: |
||||||||
Land, buildings, riverboats and equipment, net |
$ | 38.4 | $ | 57.4 | ||||
Other assets, net |
27.4 | 39.0 | ||||||
$ | 65.8 | $ | 96.4 | |||||
Liabilities: |
||||||||
Accounts payable and other accrued liabilities |
$ | 13.4 | $ | 17.4 | ||||
Long term liabilities |
0.3 | 19.3 | ||||||
13.7 | 36.7 | |||||||
Net Assets |
$ | 52.1 | $ | 59.7 | ||||
13
14
15
16
100% Owned | Consolidating | Pinnacle | ||||||||||||||||||
Pinnacle | 100% Owned | Non- | and | Entertainment, | ||||||||||||||||
Entertainment, | Guarantor | Guarantor | Eliminating | Inc. | ||||||||||||||||
Inc. | Subsidiaries(a) | Subsidiaries(b) | Entries | Consolidated | ||||||||||||||||
(in millions) | ||||||||||||||||||||
For the three months ended June 30, 2010
|
||||||||||||||||||||
Statement of Operations |
||||||||||||||||||||
Revenues: |
||||||||||||||||||||
Gaming |
$ | | $ | 236.1 | $ | | $ | | $ | 236.1 | ||||||||||
Food and beverage |
| 17.8 | | | 17.8 | |||||||||||||||
Other |
| 19.7 | | | 19.7 | |||||||||||||||
| 273.6 | | | 273.6 | ||||||||||||||||
Expenses: |
||||||||||||||||||||
Gaming |
| 135.6 | | | 135.6 | |||||||||||||||
Food and beverage |
| 18.1 | | | 18.1 | |||||||||||||||
General and administrative and other |
12.1 | 62.6 | | | 74.7 | |||||||||||||||
Depreciation and amortization |
1.4 | 27.9 | | | 29.3 | |||||||||||||||
Write-downs, reserves and recoveries |
0.4 | 31.6 | (0.4 | ) | | 31.6 | ||||||||||||||
13.9 | 275.8 | (0.4 | ) | | 289.3 | |||||||||||||||
Operating income (loss) |
(13.9 | ) | (2.2 | ) | 0.4 | | (15.7 | ) | ||||||||||||
Equity earnings of subsidiaries |
(14.1 | ) | 1.5 | | 12.6 | | ||||||||||||||
Interest expense and non-operating income, net |
(27.3 | ) | | | | (27.3 | ) | |||||||||||||
Loss on early extinguishment of debt |
(0.4 | ) | | | | (0.4 | ) | |||||||||||||
Income (loss) from continuing operations before
inter-company activity and income taxes |
(55.7 | ) | (0.7 | ) | 0.4 | 12.6 | (43.4 | ) | ||||||||||||
Management fee & inter-company interest |
4.6 | (4.6 | ) | | | | ||||||||||||||
Income tax benefit |
1.8 | | | | 1.8 | |||||||||||||||
Income (loss) from continuing operations |
(49.3 | ) | (5.3 | ) | 0.4 | 12.6 | (41.6 | ) | ||||||||||||
Income (loss) from discontinued operations, net
of taxes |
| (9.2 | ) | 1.5 | | (7.7 | ) | |||||||||||||
Net income (loss) |
$ | (49.3 | ) | $ | (14.5 | ) | $ | 1.9 | $ | 12.6 | $ | (49.3 | ) | |||||||
For the six months ended June 30, 2010
|
||||||||||||||||||||
Statement of Operations |
||||||||||||||||||||
Revenues: |
||||||||||||||||||||
Gaming |
$ | | $ | 466.9 | $ | | $ | | $ | 466.9 | ||||||||||
Food and beverage |
| 33.1 | | | 33.1 | |||||||||||||||
Other |
| 36.1 | | | 36.1 | |||||||||||||||
| 536.1 | | | 536.1 | ||||||||||||||||
Expenses: |
||||||||||||||||||||
Gaming |
| 265.4 | | | 265.4 | |||||||||||||||
Food and beverage |
| 33.8 | | | 33.8 | |||||||||||||||
General and administrative and other |
22.0 | 126.6 | (0.6 | ) | | 148.0 | ||||||||||||||
Depreciation and amortization |
2.8 | 52.3 | 0.1 | | 55.2 | |||||||||||||||
Write-downs, reserves and recoveries |
(6.1 | ) | 32.1 | (0.5 | ) | | 25.5 | |||||||||||||
18.7 | 510.2 | (1.0 | ) | | 527.9 | |||||||||||||||
Operating income (loss) |
(18.7 | ) | 25.9 | 1.0 | | 8.2 | ||||||||||||||
Equity earnings of subsidiaries |
48.6 | 2.1 | | (50.7 | ) | | ||||||||||||||
Interest (expense) and non-operating income, net |
(51.6 | ) | 3.4 | | | (48.2 | ) | |||||||||||||
Loss on early extinguishment of debt |
(1.9 | ) | | | | (1.9 | ) | |||||||||||||
Income (loss) from continuing operations before
inter-company activity and income taxes |
(23.6 | ) | 31.4 | 1.0 | (50.7 | ) | (41.9 | ) | ||||||||||||
Management fee & inter-company interest |
8.9 | (8.9 | ) | | | | ||||||||||||||
Income tax benefit |
2.1 | | | | 2.1 | |||||||||||||||
Income (loss) from continuing operations |
(12.6 | ) | 22.5 | 1.0 | (50.7 | ) | (39.8 | ) | ||||||||||||
Income from discontinued operations, net of taxes |
| 25.1 | 2.1 | | 27.2 | |||||||||||||||
Net income (loss) |
$ | (12.6 | ) | $ | 47.6 | $ | 3.1 | $ | (50.7 | ) | $ | (12.6 | ) | |||||||
17
100% Owned | Consolidating | Pinnacle | ||||||||||||||||||
Pinnacle | 100% Owned | Non- | and | Entertainment, | ||||||||||||||||
Entertainment, | Guarantor | Guarantor | Eliminating | Inc. | ||||||||||||||||
Inc. | Subsidiaries(a) | Subsidiaries(b) | Entries | Consolidated | ||||||||||||||||
(in millions) | ||||||||||||||||||||
For the three months ended June 30, 2009
|
||||||||||||||||||||
Statement of Operations |
||||||||||||||||||||
Revenues: |
||||||||||||||||||||
Gaming |
$ | | $ | 217.4 | $ | | $ | | $ | 217.4 | ||||||||||
Food and beverage |
| 15.6 | | | 15.6 | |||||||||||||||
Other |
| 19.3 | | | 19.3 | |||||||||||||||
| 252.3 | | | 252.3 | ||||||||||||||||
Expenses: |
||||||||||||||||||||
Gaming |
| 129.0 | | | 129.0 | |||||||||||||||
Food and beverage |
| 14.8 | | | 14.8 | |||||||||||||||
General and administrative and other |
14.0 | 57.7 | (0.6 | ) | | 71.1 | ||||||||||||||
Depreciation and amortization |
1.4 | 23.1 | 0.3 | | 24.8 | |||||||||||||||
Write-downs, reserves and recoveries |
| 0.3 | | | 0.3 | |||||||||||||||
15.4 | 224.9 | (0.3 | ) | | 240.0 | |||||||||||||||
Operating income (loss) |
(15.4 | ) | 27.4 | 0.3 | | 12.3 | ||||||||||||||
Equity earnings of subsidiaries |
29.4 | (0.7 | ) | | (28.7 | ) | | |||||||||||||
Interest (expense) and non-operating income, net |
(18.6 | ) | 2.7 | | | (15.9 | ) | |||||||||||||
Gain on sale of equity securities |
6.0 | | 6.9 | | 12.9 | |||||||||||||||
Income (loss) from continuing operations before
inter-company activity and income taxes |
1.4 | 29.4 | 7.2 | (28.7 | ) | 9.3 | ||||||||||||||
Management fee & inter-company interest |
3.6 | (3.6 | ) | | | | ||||||||||||||
Income tax benefit (expense) |
(0.3 | ) | | | | (0.3 | ) | |||||||||||||
Income (loss) from continuing operations |
4.7 | 25.8 | 7.2 | (28.7 | ) | 9.0 | ||||||||||||||
Income from discontinued operations, net of taxes |
| (3.7 | ) | (0.6 | ) | | (4.3 | ) | ||||||||||||
Net income (loss) |
$ | 4.7 | $ | 22.1 | $ | 6.6 | $ | (28.7 | ) | $ | 4.7 | |||||||||
For the six months ended June 30, 2009
|
||||||||||||||||||||
Statement of Operations |
||||||||||||||||||||
Revenues: |
||||||||||||||||||||
Gaming |
$ | | $ | 440.7 | $ | | $ | | $ | 440.7 | ||||||||||
Food and beverage |
| 29.4 | | | 29.4 | |||||||||||||||
Other |
0.1 | 35.4 | | | 35.5 | |||||||||||||||
0.1 | 505.5 | | | 505.6 | ||||||||||||||||
Expenses: |
||||||||||||||||||||
Gaming |
| 256.0 | | | 256.0 | |||||||||||||||
Food and beverage |
| 28.8 | | | 28.8 | |||||||||||||||
General and administrative and other |
26.3 | 112.9 | (1.2 | ) | | 138.0 | ||||||||||||||
Depreciation and amortization |
2.7 | 46.3 | 0.6 | 49.6 | ||||||||||||||||
Write-downs, reserves and recoveries |
| 0.7 | | | 0.7 | |||||||||||||||
29.0 | 444.70 | (0.6 | ) | | 473.1 | |||||||||||||||
Operating income (loss) |
(28.9 | ) | 60.8 | 0.6 | | 32.5 | ||||||||||||||
Equity earnings of subsidiaries |
59.7 | 0.7 | | (60.4 | ) | | ||||||||||||||
Interest (expense) and non-operating income, net |
(37.3 | ) | 4.9 | | | (32.4 | ) | |||||||||||||
Gain on sale of equity securities |
6.0 | | 6.9 | | 12.9 | |||||||||||||||
Income (loss) from continuing operations before
inter-company activity and income taxes |
(0.5 | ) | 66.4 | 7.5 | (60.4 | ) | 13.0 | |||||||||||||
Management fee & inter-company interest |
6.7 | (6.7 | ) | | | | ||||||||||||||
Income tax benefit (expense) |
(0.6 | ) | | | | (0.6 | ) | |||||||||||||
Income (loss) from continuing operations |
5.6 | 59.7 | 7.5 | (60.4 | ) | 12.4 | ||||||||||||||
Income (loss) from discontinued operations, net of taxes |
| (7.4 | ) | 0.6 | | (6.8 | ) | |||||||||||||
Net income (loss) |
$ | 5.6 | $ | 52.3 | $ | 8.1 | $ | (60.4 | ) | $ | 5.6 | |||||||||
18
100% Owned | Consolidating | Pinnacle | ||||||||||||||||||
Pinnacle | 100% Owned | Non- | and | Entertainment, | ||||||||||||||||
Entertainment, | Guarantor | Guarantor | Eliminating | Inc. | ||||||||||||||||
Inc. | Subsidiaries(a) | Subsidiaries(b) | Entries | Consolidated | ||||||||||||||||
(in millions) | ||||||||||||||||||||
As of June 30, 2010 |
||||||||||||||||||||
Balance Sheet |
||||||||||||||||||||
Current assets |
$ | 49.6 | $ | 131.7 | $ | 77.0 | $ | | $ | 258.3 | ||||||||||
Property and equipment, net |
15.8 | 1,471.8 | 0.5 | | 1,488.1 | |||||||||||||||
Other non-current assets |
65.1 | 53.2 | | | 118.3 | |||||||||||||||
Investment in subsidiaries |
1,631.5 | (0.6 | ) | | (1,630.9 | ) | | |||||||||||||
Assets of discontinued operations held for sale |
| 65.3 | 0.4 | | 65.7 | |||||||||||||||
Inter-company |
1.2 | | | (1.2 | ) | | ||||||||||||||
$ | 1,763.2 | $ | 1,721.4 | $ | 77.9 | $ | (1,632.1 | ) | $ | 1,930.4 | ||||||||||
Current liabilities |
49.0 | 138.8 | | | 187.8 | |||||||||||||||
Notes payable, long term |
1,175.3 | 0.8 | | | 1,176.1 | |||||||||||||||
Other non-current liabilities |
28.4 | 13.8 | | | 42.2 | |||||||||||||||
Liabilities of discontinued operations held for sale |
| 13.7 | | | 13.7 | |||||||||||||||
Inter-company |
| | 1.2 | (1.2 | ) | | ||||||||||||||
Equity |
510.5 | 1,554.3 | 76.7 | (1,630.9 | ) | 510.6 | ||||||||||||||
$ | 1,763.2 | $ | 1,721.4 | $ | 77.9 | $ | (1,632.1 | ) | $ | 1,930.4 | ||||||||||
As of December 31, 2009 |
||||||||||||||||||||
Balance Sheet |
||||||||||||||||||||
Current assets |
$ | 5.2 | $ | 86.9 | $ | 66.8 | $ | | $ | 158.9 | ||||||||||
Property and equipment, net |
16.9 | 1,472.6 | 10.5 | | 1,500.0 | |||||||||||||||
Other non-current assets |
50.6 | 39.1 | (1.2 | ) | | 88.5 | ||||||||||||||
Investment in subsidiaries |
1,576.5 | 23.3 | | (1,599.8 | ) | | ||||||||||||||
Assets of discontinued operations held for sale |
| 67.8 | 28.6 | | 96.4 | |||||||||||||||
Inter-company |
| | 1.2 | (1.2 | ) | | ||||||||||||||
$ | 1,649.2 | $ | 1,689.7 | $ | 105.9 | $ | (1,601.0 | ) | $ | 1,843.8 | ||||||||||
Current liabilities |
63.4 | 139.3 | | | 202.7 | |||||||||||||||
Notes payable, long term |
1,062.5 | 0.8 | | | 1,063.3 | |||||||||||||||
Other non-current liabilities |
28.9 | 17.7 | | | 46.6 | |||||||||||||||
Liabilities of discontinued operations held for sale |
| 32.4 | 4.4 | | 36.8 | |||||||||||||||
Inter-company |
| | 1.2 | (1.2 | ) | | ||||||||||||||
Equity |
494.4 | 1,499.5 | 100.3 | (1,599.8 | ) | 494.4 | ||||||||||||||
$ | 1,649.2 | $ | 1,689.7 | $ | 105.9 | $ | (1,601.0 | ) | $ | 1,843.8 | ||||||||||
19
100% Owned | Consolidating | Pinnacle | ||||||||||||||||||
Pinnacle | 100% Owned | Non- | and | Entertainment, | ||||||||||||||||
Entertainment, | Guarantor | Guarantor | Eliminating | Inc. | ||||||||||||||||
Inc. | Subsidiaries(a) | Subsidiaries(b) | Entries | Consolidated | ||||||||||||||||
(in millions) | ||||||||||||||||||||
For the six months ended June 30, 2010 |
||||||||||||||||||||
Statement of Cash Flows |
||||||||||||||||||||
Cash provided by (used in) operating activities |
$ | (59.4 | ) | $ | 138.8 | $ | (29.5 | ) | $ | | $ | 49.9 | ||||||||
Cash provided by (used in) investing activities |
||||||||||||||||||||
Capital expenditures and other |
(1.5 | ) | (112.9 | ) | 35.5 | | (78.9 | ) | ||||||||||||
Cash provided by (used in) investing activities |
(1.5 | ) | (112.9 | ) | 35.5 | | (78.9 | ) | ||||||||||||
Cash provided by financing activities |
||||||||||||||||||||
Change in notes payable and other |
105.8 | | | | 105.8 | |||||||||||||||
Cash provided by financing activities |
105.8 | | | | 105.8 | |||||||||||||||
Effect of exchange rate changes on cash |
| | (0.4 | ) | | (0.4 | ) | |||||||||||||
Increase in cash and cash equivalents |
44.9 | 25.9 | 5.6 | | 76.4 | |||||||||||||||
Cash and cash equivalents, beginning of period |
1.5 | 56.7 | 71.4 | | 129.6 | |||||||||||||||
Cash and cash equivalents, end of period |
$ | 46.4 | $ | 82.6 | $ | 77.0 | $ | | $ | 206.0 | ||||||||||
For the six months ended June 30, 2009 |
||||||||||||||||||||
Statement of Cash Flows |
||||||||||||||||||||
Cash provided by (used in) operating activities |
$ | (40.0 | ) | $ | 85.3 | $ | 2.7 | $ | | $ | 48.0 | |||||||||
Cash provided by (used in) investing activities |
||||||||||||||||||||
Capital expenditure and other |
(2.6 | ) | (81.2 | ) | (0.3 | ) | (84.1 | ) | ||||||||||||
Proceeds from sale of equity securities |
10.1 | | 13.6 | | 23.7 | |||||||||||||||
Cash provided by (used in) investing activities |
7.5 | (81.2 | ) | 13.3 | | (60.4 | ) | |||||||||||||
Cash provided by financing activities |
||||||||||||||||||||
Change in notes payable |
31.0 | | | | 31.0 | |||||||||||||||
Cash provided by financing activities |
31.0 | | | | 31.0 | |||||||||||||||
Effect of exchange rate changes on cash |
| | (0.3 | ) | | (0.3 | ) | |||||||||||||
Increase (decrease) in cash and cash equivalents |
(1.5 | ) | 4.1 | 15.7 | | 18.3 | ||||||||||||||
Cash and cash equivalents, beginning of period |
6.7 | 51.0 | 58.0 | | 115.7 | |||||||||||||||
Cash and cash equivalents, end of period |
$ | 5.2 | $ | 55.1 | $ | 73.7 | $ | | $ | 134.0 | ||||||||||
(a) | The following material subsidiaries are identified as guarantors of the 7.50% Notes, 8.625% Notes and 8.75% Notes: Belterra Resort Indiana, LLC; Boomtown, LLC; PNK (RENO), LLC; LouisianaI Gaming; PNK (LAKE CHARLES), L.L.C.; Casino Magic Corp.; Biloxi Casino Corp.; PNK (BOSSIER CITY), Inc.; Casino One Corporation; PNK (ES), LLC; PNK (ST. LOUIS RE), LLC; AREP Boardwalk Properties LLC; PNK (Baton Rouge) Partnership; PNK (River City), LLC, PNK (SCB), L.L.C.; PNK Development 7, LLC; PNK Development 8, LLC; PNK Development 9, LLC; PNK Development 13, LLC; President Riverboat Casino-Missouri, Inc.; and ACE Gaming, LLC. In addition, certain other immaterial subsidiaries are also guarantors of the 7.50% Notes, 8.625% Notes and 8.75% Notes. | |
(b) | PNK Development 11, LLC, which as of June 30, 2010 held approximately $66.3 million in cash and cash equivalents, is our only material non-guarantor of the 7.50% Notes, 8.625% Notes and 8.75% Notes. Other non-guarantor subsidiaries include, but are not limited to, a subsidiary with $10.5 million in cash and cash equivalents as of June 30, 2010. |
20
For the three months ended | For the six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(in millions) | ||||||||||||||||
Revenues: |
||||||||||||||||
LAuberge du Lac |
$ | 83.7 | $ | 86.6 | $ | 170.0 | $ | 175.0 | ||||||||
St. Louis (a) |
85.4 | 54.2 | 157.2 | 107.3 | ||||||||||||
Boomtown New Orleans |
34.2 | 35.5 | 69.0 | 73.7 | ||||||||||||
Belterra Casino Resort |
38.8 | 42.8 | 75.2 | 83.8 | ||||||||||||
Boomtown Bossier City |
21.1 | 22.7 | 45.5 | 47.5 | ||||||||||||
Boomtown Reno |
10.4 | 10.5 | 19.2 | 18.2 | ||||||||||||
Total Revenue |
$ | 273.6 | $ | 252.3 | $ | 536.1 | $ | 505.5 | ||||||||
Adjusted EBITDA (b): |
||||||||||||||||
LAuberge du Lac |
$ | 22.1 | $ | 21.5 | $ | 46.1 | $ | 45.0 | ||||||||
St. Louis (a) |
14.2 | 9.9 | 29.7 | 20.5 | ||||||||||||
Boomtown New Orleans |
10.4 | 10.6 | 21.1 | 24.1 | ||||||||||||
Belterra Casino Resort |
7.7 | 8.2 | 14.2 | 16.0 | ||||||||||||
Boomtown Bossier City |
4.7 | 4.7 | 11.2 | 10.9 | ||||||||||||
Boomtown Reno |
0.5 | 0.1 | (0.5 | ) | (1.2 | ) | ||||||||||
59.6 | 55.0 | 121.8 | 115.3 | |||||||||||||
Corporate expenses (c) |
(10.2 | ) | (8.2 | ) | (18.3 | ) | (18.0 | ) | ||||||||
49.4 | 46.8 | 103.5 | 97.3 | |||||||||||||
Other benefits (costs): |
||||||||||||||||
Depreciation and amortization |
(29.3 | ) | (24.8 | ) | (55.2 | ) | (49.6 | ) | ||||||||
Pre-opening and development costs |
(2.1 | ) | (4.1 | ) | (11.0 | ) | (7.0 | ) | ||||||||
Non-cash share-based compensation |
(2.1 | ) | (5.3 | ) | (3.5 | ) | (7.5 | ) | ||||||||
Impairment of indefinite-lived intangible assets |
(11.5 | ) | | (11.5 | ) | | ||||||||||
Impairment of land and construction costs |
(18.4 | ) | | (18.4 | ) | | ||||||||||
Write-downs, reserves and recoveries, net |
(1.7 | ) | (0.3 | ) | 4.4 | (0.8 | ) | |||||||||
Interest expense, net of capitalized interest |
(27.4 | ) | (15.9 | ) | (48.4 | ) | (32.5 | ) | ||||||||
Gain on sale of equity securities |
| 12.9 | | 12.9 | ||||||||||||
Loss on early extinguishment of debt |
(0.4 | ) | | (1.9 | ) | | ||||||||||
Other non-operating income |
0.1 | 0.1 | 0.1 | 0.2 | ||||||||||||
Income tax benefit (expense) |
1.8 | (0.4 | ) | 2.1 | (0.6 | ) | ||||||||||
Income (loss) from continuing operations |
$ | (41.6 | ) | $ | 9.0 | $ | (39.8 | ) | $ | 12.4 | ||||||
21
For the six months ended | ||||||||
June 30, | ||||||||
2010 | 2009 | |||||||
(in millions) | ||||||||
Capital expenditures: |
||||||||
LAuberge du Lac |
$ | 7.5 | $ | 2.8 | ||||
St. Louis (a) |
58.8 | 63.2 | ||||||
Boomtown New Orleans |
1.4 | 2.6 | ||||||
Belterra Casino Resort |
3.0 | 3.5 | ||||||
Boomtown Bossier City |
2.8 | 1.0 | ||||||
Boomtown Reno |
0.2 | 1.4 | ||||||
Corporate and other, including properties under development(d) |
19.7 | 9.7 | ||||||
$ | 93.4 | $ | 84.2 | |||||
June 30, | December 31, | |||||||
2010 | 2009 | |||||||
(in millions) | ||||||||
Assets |
||||||||
LAuberge du Lac |
$ | 317.5 | $ | 331.0 | ||||
St. Louis (a) |
836.8 | 806.7 | ||||||
Boomtown New Orleans |
68.3 | 74.3 | ||||||
Belterra Casino Resort |
190.0 | 193.6 | ||||||
Boomtown Bossier City |
91.3 | 92.1 | ||||||
Boomtown Reno |
42.5 | 41.9 | ||||||
Corporate and other, including new properties and discontinued operations |
384.0 | 304.3 | ||||||
$ | 1,930.4 | $ | 1,843.9 | |||||
(a) | Our St. Louis segment consists of Lumière Place, which includes the Lumière Place Casino, the Pinnacle-owned Four Seasons Hotel St. Louis and HoteLumière, and River City. | |
(b) | We define Adjusted EBITDA for each 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, loss on early extinguishment of debt, loss on sale of discontinued operations, and discontinued operations. We use Adjusted EBITDA to compare operating results among our properties and between accounting periods. | |
(c) | Corporate expenses represent unallocated payroll, professional fees, travel expenses and other general and administrative expenses not directly related to our casino and hotel operations. | |
(d) | Includes capital expenditures for our various development projects not yet reflected as operating segments, including the following: |
For the six months ended | ||||||||
June 30, | ||||||||
2010 | 2009 | |||||||
(in millions) | ||||||||
Sugarcane Bay |
$ | 10.5 | $ | 6.4 | ||||
Baton Rouge |
4.0 | |
22
Exhibit | ||||
Number | Description of Exhibit | |||
3.1 | Restated Certificate of Incorporation of Pinnacle Entertainment, Inc., as amended, is
hereby incorporated by reference to Exhibit 3.3 to the Companys Current Report on Form
8-K filed on May 9, 2005. (SEC File No. 001-13641). |
|||
3.2 | Restated Bylaws of Pinnacle Entertainment, Inc., as amended, are hereby incorporated by
reference to Exhibit 3.2 to the Companys Current Report on Form 8-K filed on April 2,
2010. (SEC File No. 001-13641). |
|||
4.1 | Indenture dated as of May 6, 2010, governing the 8.75% Senior Subordinated Notes due
2020, by and among the Company, the guarantors identified therein and The Bank of New
York Mellon Trust Company, N.A. is hereby incorporated by reference to Exhibit 4.1 to
the Companys Current Report on Form 8-K filed on May 12, 2010. (SEC File No.
001-13641). |
|||
4.2 | Form of 8.75% Senior Subordinated Note due 2020 is hereby incorporated by reference to
Exhibit 4.2 to the Companys Current Report on Form 8-K filed on May 12, 2010. (SEC File
No. 001-13641). |
|||
4.3 | Registration Rights Agreement, dated as of May 6, 2010, among the Company, the
guarantors identified therein and J.P. Morgan Securities Inc., Banc of America
Securities LLC, Barclays Capital Inc., Credit Agricole Securities (USA) Inc., Deutsche
Bank Securities Inc. and UBS Securities LLC as representatives of the several initial
purchasers is hereby incorporated by reference to Exhibit 4.3 to the Companys Current
Report on Form 8-K filed on May 12, 2010. (SEC File No. 001-13641). |
|||
10.1 | Agreement for Guaranteed Maximum Price Construction Services, effective as of March 30,
2010, by and between PNK (Baton Rouge) Partnership and Manhattan Construction Company is
hereby incorporated by reference to Exhibit 10.1 to the Companys Current Report on Form
8-K filed on April 5, 2010. (SEC File No. 001-13641). |
|||
10.2 | | First Amendment to Amended and Restated Employment Agreement, dated as of April 15,
2010, between Pinnacle Entertainment, Inc. and Alain Uboldi is hereby incorporated by
reference to Exhibit 10.1 to the Companys Current Report on Form 8-K filed on April 19,
2010. (SEC File No. 001-13641). |
||
10.3 | Purchase Agreement, dated as of April 29, 2010, by and among Pinnacle Entertainment,
Inc. and J.P. Morgan Securities Inc., Banc of America Securities LLC, Barclays Capital
Inc., Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc. and UBS
Securities LLC, as representatives of the several Initial Purchasers named in Schedule 1
of the Purchase Agreement is hereby incorporated by reference to Exhibit 10.1 to the
Companys Current Report on Form 8-K filed on May 5, 2010. (SEC File No. 001-13641). |
|||
10.4 | First Amendment to Third Amended and Restated Credit Agreement, dated as of April 28,
2010, by and between Pinnacle Entertainment, Inc., Barclays Bank PLC, as the
administrative agent, and the Required Lenders is hereby incorporated by reference to
Exhibit 10.1 to the Companys Current Report on Form 8-K filed on April 29, 2010. (SEC
File No. 001-13641). |
|||
10.5 | Sale and Purchase Agreement, dated April 29, 2010, between Casino Magic Corp., Casino
Magic Management Services Corp., Casino Club S.A., Da Silvano S.A., Compañía
Gerenciadora de Inversiones S.A. and Correon S.A. is hereby incorporated by reference to
Exhibit 2.1 to the Companys Current Report on Form 8-K filed on July 7, 2010. (SEC File
No. 001-13641). |
|||
10.6 | | Pinnacle Entertainment, Inc. 2005 Equity and Performance Incentive Plan, As Amended
is hereby incorporated by reference to Exhibit 10.1 to the Companys Current Report on
Form 8-K filed on May 17, 2010. (SEC File No. 001-13641). |
||
11 | Statement re: Computation of Earnings Per Share is hereby incorporated by reference to
Exhibit 11 to the Companys Quarterly Report on Form 10-Q filed on August 9, 2010.
(SEC File No. 001-13641). |
23
Exhibit | ||||
Number | Description of Exhibit | |||
31.1 | * | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer. |
||
31.2 | * | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer. |
||
32 | ** | Section 1350 Certifications of Chief Executive Officer and Chief Financial Officer. |
||
101 | ** | The following financial statements from Pinnacle Entertainment, Inc.s Quarterly Report
on Form 10-Q for the quarterly period ended June 30, 2010, formatted in XBRL (eXtensible
Business Reporting Language): |
||
(i) unaudited Condensed Consolidated Balance Sheets June 30, 2010 and December 31,
2009. |
||||
(ii) unaudited Condensed Consolidated Statements of OperationsThree and Six Months
Ended June 30, 2010 and 2009. |
||||
(iii) unaudited Condensed Consolidated Statements of Cash Flows Six Months Ended June
30, 2010 and 2009. |
||||
(iv) Notes to unaudited Condensed Consolidated Financial Statements June 30, 2010. |
* | Filed herewith. | |
** | Furnished herewith. | |
| Management contract or compensatory plan or arrangement. |
24
PINNACLE ENTERTAINMENT, INC. (Registrant) |
||||
Date: August 31, 2010 | By: | /s/ Stephen H. Capp | ||
Stephen H. Capp | ||||
Executive Vice President and Chief Financial Officer (Authorized Officer, Principal Financial Officer) |
25
Exhibit | ||||
Number | Description of Exhibit | |||
3.1 | Restated Certificate of Incorporation of Pinnacle Entertainment, Inc., as amended, is
hereby incorporated by reference to Exhibit 3.3 to the Companys Current Report on Form
8-K filed on May 9, 2005. (SEC File No. 001-13641). |
|||
3.2 | Restated Bylaws of Pinnacle Entertainment, Inc., as amended, are hereby incorporated by
reference to Exhibit 3.2 to the Companys Current Report on Form 8-K filed on April 2,
2010. (SEC File No. 001-13641). |
|||
4.1 | Indenture dated as of May 6, 2010, governing the 8.75% Senior Subordinated Notes due
2020, by and among the Company, the guarantors identified therein and The Bank of New
York Mellon Trust Company, N.A. is hereby incorporated by reference to Exhibit 4.1 to
the Companys Current Report on Form 8-K filed on May 12, 2010. (SEC File No.
001-13641). |
|||
4.2 | Form of 8.75% Senior Subordinated Note due 2020 is hereby incorporated by reference to
Exhibit 4.2 to the Companys Current Report on Form 8-K filed on May 12, 2010. (SEC File
No. 001-13641). |
|||
4.3 | Registration Rights Agreement, dated as of May 6, 2010, among the Company, the
guarantors identified therein and J.P. Morgan Securities Inc., Banc of America
Securities LLC, Barclays Capital Inc., Credit Agricole Securities (USA) Inc., Deutsche
Bank Securities Inc. and UBS Securities LLC as representatives of the several initial
purchasers is hereby incorporated by reference to Exhibit 4.3 to the Companys Current
Report on Form 8-K filed on May 12, 2010. (SEC File No. 001-13641). |
|||
10.1 | Agreement for Guaranteed Maximum Price Construction Services, effective as of March 30,
2010, by and between PNK (Baton Rouge) Partnership and Manhattan Construction Company is
hereby incorporated by reference to Exhibit 10.1 to the Companys Current Report on Form
8-K filed on April 5, 2010. (SEC File No. 001-13641). |
|||
10.2 | | First Amendment to Amended and Restated Employment Agreement, dated as of April 15,
2010, between Pinnacle Entertainment, Inc. and Alain Uboldi is hereby incorporated by
reference to Exhibit 10.1 to the Companys Current Report on Form 8-K filed on April 19,
2010. (SEC File No. 001-13641). |
||
10.3 | Purchase Agreement, dated as of April 29, 2010, by and among Pinnacle Entertainment,
Inc. and J.P. Morgan Securities Inc., Banc of America Securities LLC, Barclays Capital
Inc., Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc. and UBS
Securities LLC, as representatives of the several Initial Purchasers named in Schedule 1
of the Purchase Agreement is hereby incorporated by reference to Exhibit 10.1 to the
Companys Current Report on Form 8-K filed on May 5, 2010. (SEC File No. 001-13641). |
|||
10.4 | First Amendment to Third Amended and Restated Credit Agreement, dated as of April 28,
2010, by and between Pinnacle Entertainment, Inc., Barclays Bank PLC, as the
administrative agent, and the Required Lenders is hereby incorporated by reference to
Exhibit 10.1 to the Companys Current Report on Form 8-K filed on April 29, 2010. (SEC
File No. 001-13641). |
|||
10.5 | Sale and Purchase Agreement, dated April 29, 2010, between Casino Magic Corp., Casino
Magic Management Services Corp., Casino Club S.A., Da Silvano S.A., Compañía
Gerenciadora de Inversiones S.A. and Correon S.A. is hereby incorporated by reference to
Exhibit 2.1 to the Companys Current Report on Form 8-K filed on July 7, 2010. (SEC File
No. 001-13641). |
|||
10.6 | | Pinnacle Entertainment, Inc. 2005 Equity and Performance Incentive Plan, As Amended
is hereby incorporated by reference to Exhibit 10.1 to the Companys Current Report on
Form 8-K filed on May 17, 2010. (SEC File No. 001-13641). |
||
11 | Statement re: Computation of Earnings Per Share is hereby incorporated by reference to
Exhibit 11 to the Companys Quarterly Report on Form 10-Q filed on August 9, 2010.
(SEC File No. 001-13641). |
26
Exhibit | ||||
Number | Description of Exhibit | |||
31.1 | * | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer. |
||
31.2 | * | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer. |
||
32 | ** | Section 1350 Certifications of Chief Executive Officer and Chief Financial Officer. |
||
101 | ** | The following financial statements from Pinnacle Entertainment, Inc.s Quarterly Report
on Form 10-Q for the quarterly period ended June 30, 2010, formatted in XBRL (eXtensible
Business Reporting Language): |
||
(i) unaudited Condensed Consolidated Balance Sheets June 30, 2010 and December 31,
2009. |
||||
(ii) unaudited Condensed Consolidated Statements of OperationsThree and Six Months
Ended June 30, 2010 and 2009. |
||||
(iii) unaudited Condensed Consolidated Statements of Cash Flows Six Months Ended June
30, 2010 and 2009. |
||||
(iv) Notes to unaudited Condensed Consolidated Financial Statements June 30, 2010. |
* | Filed herewith. | |
** | Furnished herewith. | |
| Management contract or compensatory plan or arrangement. |
27