Regional casino operator Pinnacle Entertainment grew first quarter profits despite a slight overall revenue decline as the company nears completion of its acquisition by rival Penn National Gaming.
In a statement Wednesday, Pinnacle said net revenue declined 1.8 percent to $628.4 million in the quarter that ended March 31. Net income grew to 21.8 million from $17.2 million. Earnings per share was 35 cents, compared with 28 cents per share a year ago.
In a statement, Pinnacle said strong cash flow performance by L’Auberge Lake Charles in Louisiana, Ameristar Black Hawk in Colorado, and Horseshu and Cactus Petes in Northern Nevada boosted results.
The company did not hold a conference call with analysts because of its pending $2.8 billion buyout by Penn National.
Pinnacle says the merger, which is still subject to remaining regulatory approvals, is expected to close in the second half of the year. The deal is expected to generate $100 million in annual run-rate cost synergies.
“Significant progress has been made toward completing our transaction with Penn National, including the approval of the transaction by the shareholders of both companies in March, and the receipt of regulatory approvals in Illinois, Mississippi, Pennsylvania and West Virginia,” Pinnacle CEO Anthony Sanfilippo said in a statement. “We continue to work closely with the Penn National team to obtain the remaining regulatory approvals and in coordinating a smooth transition and seamless integration upon the closing of the transaction. We remain on track to complete the transaction in the second half of 2018.”
