Pinnacle Entertainment 1Q profit up on insurance proceeds

LAS VEGAS—Casino operator Pinnacle Entertainment Inc. said Wednesday its first-quarter profit soared 76 percent, helped by Hurricane Katrina insurance proceeds.

Net income for the period ended March 31 grew to $5.1 million, or 8 cents per share, compared with $2.9 million, or 5 cents per share, in the prior year.

Loss from continuing operations was $16.1 million, or 27 cents per share, compared with income from continuing operations of $3.3 million, or 6 cents per share.

Quarterly results included $21.2 million, or 35 cents per share, related to Hurricane Katrina insurance proceeds.

Revenue rose to $257.2 million, up 11 percent from $232.8 million a year earlier. Pinnacle credited its strong performance to the December opening of its Lumiere Place-St. Louis casino and a room expansion at the L'Auberge du Lac in Lake Charles, La., partially offset by a truck stop closure at Boomtown Reno.

Analysts polled by Thomson Financial predicted a loss of 1 cent per share on revenue of $258.7 million.

Gaming revenue increased to $228.8 million from $204.4 million, while food and beverage sales climbed to $13.8 million from $10.9 million.

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