PINNACLE ENTERTAINMENT INC

CIK:0000356213|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues:
Gaming	$ 2,048,272	$ 1,974,410	$ 1,327,266
Food and beverage	125,775	118,397	78,857
Lodging	50,961	50,553	31,297
Retail, entertainment and other	66,840	67,183	50,416
Total revenues	2,291,848	2,210,543	1,487,836
Expenses and other costs:
Gaming	1,094,803	1,056,878	733,459
Food and beverage	118,323	110,349	69,756
Lodging	25,001	24,002	14,820
Retail, entertainment and other	28,426	27,031	23,303
General and administrative	426,064	421,399	287,381
Depreciation and amortization	242,550	241,062	148,456
Pre-opening, development and other costs	14,247	12,962	89,009
Impairment of goodwill	4,757	0	0
Impairment of other intangible assets	33,845	0	10,000
Write-downs, reserves and recoveries, net	2,666	6,387	7,265
Total expenses and other costs	1,990,682	1,900,070	1,383,449
Operating income	301,166	310,473	104,387
Interest expense, net	(244,408)	(252,647)	(169,812)
Loss on early extinguishment of debt	0	(8,234)	(30,830)
Loss from equity method investments	(83)	(165)	(92,181)
Income (loss) from continuing operations before income taxes	56,675	49,427	(188,436)
Income tax (expense) benefit	(14,560)	(11,096)	55,055
Income (loss) from continuing operations	42,115	38,331	(133,381)
Income (loss) from discontinued operations, net of income taxes	5,494	5,449	(122,540)
Net income (loss)	47,609	43,780	(255,921)
Net loss attributable to non-controlling interest	(1,278)	(63)	(51)
Net income (loss) attributable to Pinnacle Entertainment, Inc.	$ 48,887	$ 43,843	$ (255,870)
Net income (loss) per common share—basic
Income (loss) from continuing operations (in dollars per share)	$ 0.71	$ 0.64	$ (2.27)
Income (loss) from discontinued operations, net of income taxes (in dollars per share)	0.09	0.09	(2.09)
Net income (loss) per common share—basic (in dollars per share)	0.80	0.73	(4.36)
Net income (loss) per common share—diluted
Income (loss) from continuing operations (in dollars per share)	0.68	0.62	(2.27)
Income (loss) from discontinued operations, net of income taxes (in dollars per share)	0.09	0.09	(2.09)
Net income (loss) per common share—diluted (in dollars per share)	$ 0.77	$ 0.71	$ (4.36)
Number of shares - basic	61,030	59,666	58,707
Number of shares - diluted	63,321	61,606	58,707

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net income (loss)	$ 47,609	$ 43,780	$ (255,921)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	242,550	241,062	160,997
(Gain) loss on sales or disposals of long-lived assets	(4,526)	1,395	3,554
Loss from equity method investments	83	165	92,181
Loss on early extinguishment of debt	0	8,234	30,830
Impairment of goodwill	4,757	0	0
Impairment of other intangible assets	33,845	0	10,000
Impairment of land, buildings, vessels and equipment	4,061	4,691	146,260
Amortization of debt issuance costs and debt discounts/premiums	12,375	9,696	6,432
Share-based compensation expense	17,789	14,043	11,978
Change in income taxes	32,288	11,093	(51,627)
Changes in operating assets and liabilities:
Receivables, net	(4,740)	2,099	(1,635)
Prepaid expenses, inventories and other	14,773	(10,698)	10,565
Accounts payable, accrued expenses and other	7,362	2,926	(2,547)
Net cash provided by operating activities	408,226	328,486	161,067
Cash flows from investing activities:
Capital expenditures and land additions	(84,032)	(230,815)	(292,623)
Payment for business combination	0	0	(1,749,736)
Equity method investment, inclusive of capitalized interest	0	(25)	(2,732)
Purchase of held-to-maturity debt securities	0	0	(5,853)
Proceeds from matured investments	0	0	4,428
Proceeds from sales of property and equipment	436	441	1,148
Net proceeds from dispositions of discontinued operations and assets held for sale	25,066	258,507	205,703
Purchase of intangible asset	(25,000)	(25,000)	0
Escrow and deposit refund	0	25,000	3,151
Restricted cash	5,667	5,925	656
Loans receivable, net	(2,075)	(817)	(6,884)
Net cash provided by (used in) investing activities	(79,938)	33,216	(1,842,742)
Cash flows from financing activities:
Proceeds from credit facility	466,700	291,700	2,168,835
Repayments under credit facility	(803,200)	(692,987)	(15,122)
Proceeds from issuance of long-term debt	0	0	850,000
Repayments of long-term debt	0	0	(1,190,313)
Proceeds from common stock options exercised	9,334	6,644	10,070
Distribution to non-controlling interest minority owner	0	0	(911)
Debt issuance and other financing costs	(1,742)	(980)	(44,101)
Net cash provided by (used in) financing activities	(328,908)	(395,623)	1,778,458
Change in cash and cash equivalents	(620)	(33,921)	96,783
Cash and cash equivalents at the beginning of the year	164,654	198,575	101,792
Cash and cash equivalents at the end of the year	164,034	164,654	198,575
Supplemental Cash Flow Information:
Cash paid for interest, net of amounts capitalized	232,002	242,507	141,199
Cash (refunds) payments related to income taxes, net	(17,316)	118	2,629
Decrease in construction related deposits and liabilities	(5,047)	(24,899)	(163)
Increase in accrued liabilities associated with recognized intangible asset	0	25,000	0
Non-cash issuance of common stock	$ 763	$ 881	$ 227

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current Assets:
Cash and cash equivalents	$ 164,034	$ 164,654
Accounts receivable, net of allowance for doubtful accounts of $9,445 and $4,963	33,594	28,424
Inventories	10,309	9,877
Income tax receivable, net	1,133	20,289
Prepaid expenses and other assets	14,624	27,102
Deferred income taxes	0	7,509
Assets of discontinued operations held for sale	9,938	21,260
Total current assets	233,632	279,115
Restricted cash	0	5,667
Land, buildings, vessels and equipment, net of accumulated depreciation	2,856,011	3,017,009
Goodwill	914,525	919,282
Intangible assets, net	479,543	529,269
Other assets, net	47,200	52,108
Total assets	4,530,911	4,802,450
Current Liabilities:
Accounts payable	67,297	57,632
Accrued interest	50,091	49,760
Accrued compensation	74,069	73,698
Accrued taxes	38,910	39,287
Other accrued liabilities	84,872	119,106
Current portion of long-term debt	11,006	11,006
Liabilities of discontinued operations held for sale	0	413
Total current liabilities	326,245	350,902
Long-term debt less current portion	3,616,729	3,944,416
Other long-term liabilities	36,605	40,021
Deferred income taxes	187,823	177,729
Total liabilities	$ 4,167,402	$ 4,513,068
Commitments and contingencies (Note 11)
Stockholders’ Equity:
Preferred stock—$1.00 par value, 250,000 shares authorized, none issued or outstanding	$ 0	$ 0
Common stock—$0.10 par value, 150,000,000 authorized, 60,870,749 and 59,979,853 shares issued and outstanding, net of treasury shares	6,724	6,635
Additional paid-in capital	1,122,661	1,096,508
Accumulated deficit	(705,319)	(754,206)
Accumulated other comprehensive income	408	132
Treasury stock, at cost, 6,374,882 of treasury shares for both periods	(71,090)	(71,090)
Total Pinnacle Entertainment, Inc. stockholders’ equity	353,384	277,979
Non-controlling interest	10,125	11,403
Total stockholders’ equity	363,509	289,382
Total liabilities and stockholders’ equity	$ 4,530,911	$ 4,802,450