The casino planned for the Four Seasons Emerald Bay property in Exuma will likely open in the first half of this year, according to executives of the company which has been licensed to run the operation.
Pinnacle Entertainment’s operation is expected to be 5,000 square feet in size and will require a total investment of approximately $5 million, officials noted while reporting strong financial results for the fourth quarter and full year ended December 31, 2005.
Last December the Gaming Board said it had no objections to the company being licensed to run the casino and left the matter to the minister responsible for gaming Obie Wilchcombe who eventually gave the green light.
For the fourth quarter, Pinnacle’s revenues rose 73.2% to $227.0 million from $131.0 million a year earlier. Adjusted EBITDA was $45.0 million in the 2005 quarterly period, more than 2.6 times the $17.2 million in the 2004 period. The increases were attributed to the opening of the company’s L’Auberge du Lac operation and the record performance of Boomtown New Orleans.
Adjusted net income for the fourth quarter of 2005 was $9.8 million, or $0.23 per share, compared to an adjusted net loss of $2.6 million, or $0.07 per share, for the fourth quarter of 2004.
Revenues for all of 2005 increased 32.7% to a record $725.9 million from $547.1 million, while adjusted EBITDA increased 34.1% to $128.0 million from $95.4 million in the prior year.
Adjusted net income for the year ended December 31, 2005 was $14.7 million, or $0.34 per share, compared to adjusted net income of $0.3 million, or $0.01 per share, for the prior-year period.
“In January 2006, we announced plans for expansion projects at three of our properties and priced a common stock offering raising $179 million. We look forward to executing our development plans throughout the year and continuing to grow the company,” said Daniel R. Lee, chairman and chief executive officer of Pinnacle Entertainment, Inc.
Mr. Lee was “extremely pleased” with the company’s 2005 financial results, particularly in light of the significant hurricane disruption in the second half of that year.
“Our Boomtown New Orleans facility reported record operating results in both the quarter and year, despite the hurricane interruptions and significant repair costs,” he said.
“Our new L’Auberge du Lac facility reopened after Hurricane Rita with revenues even stronger than before the storm. Our Belterra Casino Resort had one of its strongest quarters since its opening in 2000 and achieved its fifth year of consecutive revenue and earnings growth. Combined, our 2005 fourth quarter results significantly exceeded the 2004 quarterly period despite our Casino Magic Biloxi facility remaining closed since Hurricane Katrina hit in late August.”
The Exuma casino planned for the adjourning property to the five-star Emerald Bay resort is expected to become another magnet for tourists hoping to take full advantage of their vacation getaway.
Pinnacle Entertainment (PNK) has signed a letter of intent to sublease premises from the Four Seasons Emerald Bay Resort. The company had hoped to start its venture by April 2005.
Tourism Minister Obie Wilchcombe said despite the setback, investors were still very enthused about the project.
“The Four Seasons has one of the highest room occupancy rates and the service is impeccable, and the fact that they opened a marina means that they would get additional visitors, so in Exuma the casino is an amenity and they need it for the entertainment and they need it for the high-end visitors who would be coming in to Exuma,” Minister Wilchcombe told the Bahama Journal.
By: Tameka Lundy, The Bahama Journal
