Delaware | 001-37666 | 47-4668380 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
3980 Howard Hughes Parkway, Las Vegas, Nevada | 89169 |
(Address of principal executive offices) | (Zip Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Description | |
Exhibit 99.1 |
PINNACLE ENTERTAINMENT, INC. | |||
(Registrant) | |||
Date: | October 19, 2018 | By: | /s/ William J. Fair |
William J. Fair, Chief Financial Officer |
Pinnacle Entertainment, Inc. | Less: Divested Properties (Note 2) | Pro Forma Adjustments (Note 2) | Pro Forma Pinnacle Entertainment, Inc. | ||||||||||||
Revenues: | |||||||||||||||
Gaming | $ | 2,286,881 | $ | (589,282 | ) | $ | — | $ | 1,697,599 | ||||||
Food and beverage | 133,082 | (45,819 | ) | — | 87,263 | ||||||||||
Lodging | 51,671 | (14,674 | ) | — | 36,997 | ||||||||||
Retail, entertainment and other | 90,214 | (23,484 | ) | — | 66,730 | ||||||||||
Total revenues | 2,561,848 | (673,259 | ) | — | 1,888,589 | ||||||||||
Expenses and other costs: | |||||||||||||||
Gaming | 1,243,187 | (323,196 | ) | — | 919,991 | ||||||||||
Food and beverage | 126,506 | (40,947 | ) | — | 85,559 | ||||||||||
Lodging | 25,430 | (7,655 | ) | — | 17,775 | ||||||||||
Retail, entertainment and other | 40,327 | (10,630 | ) | — | 29,697 | ||||||||||
General and administrative | 455,525 | (100,767 | ) | — | 354,758 | ||||||||||
Depreciation and amortization | 217,025 | (73,094 | ) | — | 143,931 | ||||||||||
Pre-opening, development and other costs | 9,478 | — | (6,855 | ) | 2,623 | ||||||||||
Write-downs, reserves and recoveries, net | 15,750 | (2,290 | ) | — | 13,460 | ||||||||||
Total expenses and other costs | 2,133,228 | (558,579 | ) | (6,855 | ) | 1,567,794 | |||||||||
Operating income | 428,620 | (114,680 | ) | 6,855 | 320,795 | ||||||||||
Interest expense, net | (380,859 | ) | 88,173 | — | (292,686 | ) | |||||||||
Loss on early extinguishment of debt | (516 | ) | — | — | (516 | ) | |||||||||
Loss from equity method investment | (90 | ) | — | — | (90 | ) | |||||||||
Income before income taxes | 47,155 | (26,507 | ) | 6,855 | 27,503 | ||||||||||
Income tax benefit | 14,603 | (8,399 | ) | — | 6,204 | ||||||||||
Net income | 61,758 | (34,906 | ) | 6,855 | 33,707 | ||||||||||
Less: net loss attributable to non-controlling interest | 1,346 | — | — | 1,346 | |||||||||||
Net income attributable to Pinnacle Entertainment, Inc. | $ | 63,104 | $ | (34,906 | ) | $ | 6,855 | $ | 35,053 | ||||||
Net income per common share: | |||||||||||||||
Basic | $ | 1.12 | $ | 0.62 | |||||||||||
Diluted | $ | 1.02 | $ | 0.57 | |||||||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 56,518 | 56,518 | |||||||||||||
Diluted | 61,911 | 61,911 |
Pinnacle Entertainment, Inc. | Less: Divested Properties (Note 2) | Pro Forma Adjustments (Note 2) | Pro Forma Pinnacle Entertainment, Inc. | ||||||||||||
Revenues: | |||||||||||||||
Gaming | $ | 1,005,166 | $ | (260,682 | ) | $ | — | $ | 744,484 | ||||||
Food and beverage | 142,088 | (39,314 | ) | — | 102,774 | ||||||||||
Lodging | 80,371 | (20,875 | ) | — | 59,496 | ||||||||||
Retail, entertainment and other | 48,404 | (11,725 | ) | — | 36,679 | ||||||||||
Total revenues | 1,276,029 | (332,596 | ) | — | 943,433 | ||||||||||
Expenses and other costs: | |||||||||||||||
Gaming | 524,718 | (132,956 | ) | — | 391,762 | ||||||||||
Food and beverage | 126,459 | (37,041 | ) | — | 89,418 | ||||||||||
Lodging | 29,797 | (8,137 | ) | — | 21,660 | ||||||||||
Retail, entertainment and other | 24,732 | (6,613 | ) | — | 18,119 | ||||||||||
General and administrative | 227,850 | (51,549 | ) | — | 176,301 | ||||||||||
Depreciation and amortization | 99,664 | (35,947 | ) | — | 63,717 | ||||||||||
Pre-opening, development and other costs | 2,525 | — | (2,397 | ) | 128 | ||||||||||
Write-downs, reserves and recoveries, net | 4,998 | (1,185 | ) | — | 3,813 | ||||||||||
Total expenses and other costs | 1,040,743 | (273,428 | ) | (2,397 | ) | 764,918 | |||||||||
Operating income | 235,286 | (59,168 | ) | 2,397 | 178,515 | ||||||||||
Interest expense, net | (193,482 | ) | 45,613 | — | (147,869 | ) | |||||||||
Loss from equity method investment | (89 | ) | — | — | (89 | ) | |||||||||
Income before income taxes | 41,715 | (13,555 | ) | 2,397 | 30,557 | ||||||||||
Income tax benefit | 1,845 | 851 | — | 2,696 | |||||||||||
Net income | 43,560 | (12,704 | ) | 2,397 | 33,253 | ||||||||||
Less: net loss attributable to non-controlling interest | 280 | — | — | 280 | |||||||||||
Net income attributable to Pinnacle Entertainment, Inc. | $ | 43,840 | $ | (12,704 | ) | $ | 2,397 | $ | 33,533 | ||||||
Net income per common share: | |||||||||||||||
Basic | $ | 0.77 | $ | 0.59 | |||||||||||
Diluted | $ | 0.70 | $ | 0.54 | |||||||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 57,225 | 57,225 | |||||||||||||
Diluted | 62,255 | 62,255 |
Pinnacle Entertainment, Inc. | Less: Divested Properties (Note 2) | Pro Forma Adjustments (Note 2) | Pro Forma Pinnacle Entertainment, Inc. | ||||||||||||
ASSETS | |||||||||||||||
Current Assets: | |||||||||||||||
Cash and cash equivalents | $ | 148,558 | $ | (42,415 | ) | $ | 621,200 | $ | 727,343 | ||||||
Accounts receivable, net | 46,492 | (9,067 | ) | — | 37,425 | ||||||||||
Inventories | 10,644 | (3,082 | ) | — | 7,562 | ||||||||||
Prepaid expenses and other assets | 35,941 | (7,952 | ) | — | 27,989 | ||||||||||
Total current assets | 241,635 | (62,516 | ) | 621,200 | 800,319 | ||||||||||
Land, buildings, vessels and equipment, net | 2,567,506 | (938,220 | ) | — | 1,629,286 | ||||||||||
Goodwill | 610,889 | (159,783 | ) | — | 451,106 | ||||||||||
Other intangible assets, net | 380,351 | (195,600 | ) | — | 184,751 | ||||||||||
Deferred incomes taxes | 1,117 | 4,098 | — | 5,215 | |||||||||||
Other assets, net | 57,521 | (123 | ) | — | 57,398 | ||||||||||
Total assets | $ | 3,859,019 | $ | (1,352,144 | ) | $ | 621,200 | $ | 3,128,075 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | |||||||||||||||
Current Liabilities: | |||||||||||||||
Accounts payable | $ | 55,182 | $ | (14,269 | ) | $ | — | $ | 40,913 | ||||||
Accrued interest | 6,482 | — | — | 6,482 | |||||||||||
Accrued compensation | 56,392 | (11,464 | ) | — | 44,928 | ||||||||||
Accrued taxes | 56,063 | (14,108 | ) | — | 41,955 | ||||||||||
Current portion of long-term financing obligation | 11,003 | (2,931 | ) | — | 8,072 | ||||||||||
Other accrued liabilities | 90,133 | (18,810 | ) | — | 71,323 | ||||||||||
Total current liabilities | 275,255 | (61,582 | ) | — | 213,673 | ||||||||||
Long-term debt less current portion | 749,221 | — | — | 749,221 | |||||||||||
Long-term financing obligation less current portion | 3,083,272 | (821,217 | ) | — | 2,262,055 | ||||||||||
Other long-term liabilities | 32,732 | (208 | ) | — | 32,524 | ||||||||||
Total liabilities | 4,140,480 | (883,007 | ) | — | 3,257,473 | ||||||||||
Total stockholders’ equity (deficit) | (281,461 | ) | (469,137 | ) | 621,200 | (129,398 | ) | ||||||||
Total liabilities and stockholders’ equity (deficit) | $ | 3,859,019 | $ | (1,352,144 | ) | $ | 621,200 | $ | 3,128,075 |