

							100% Owned			Consolidating			Pinnacle
	Pinnacle			100% Owned			Non-			and			Entertainment,
	Entertainment,			Guarantor			Guarantor			Eliminating			Inc.
	Inc.			Subsidiaries(a)			Subsidiaries(b)			Entries			Consolidated
	(in millions)
Statements of Operations
For the year ended December 31, 2012
Revenues:
Gaming	$	—		$	1,042.5		$	—		$	—		$	1,042.5
Food and beverage	—			74.6			—			—			74.6
Other	0.1			79.4			0.5			—			80.0
	0.1			1,196.5			0.5			—			1,197.1
Expenses:
Gaming	—			588.6			—			—			588.6
Food and beverage	—			64.5			—			—			64.5
General and administrative and other	29.8			256.6			2.8			—			289.2
Depreciation and amortization	3.3			112.2			0.2			—			115.7
Write downs, reserves, recoveries, net	0.3			9.8			1.7			—			11.8
	33.4			1,031.7			4.7			—			1,069.8
Operating income (loss)	(33.3		)	164.8			(4.2		)	—			127.3
Equity earnings of subsidiaries	111.2			—			—			(111.2		)	—
Interest (expense) and non-operating income, net	(114.4		)	12.1			8.6			—			(93.7		)
Loss on early extinguishment of debt	(20.7		)	—			—			—			(20.7		)
Loss from equity method investment	—			—			(30.8		)	—			(30.8		)
Income (loss) from continuing operations before inter-company activity and income taxes	(57.2		)	176.9			(26.4		)	(111.2		)	(17.9		)
Management fee and inter-company interest	30.1			(21.7		)	(8.4		)	—			—
Income tax expense	(4.7		)	—			—			—			(4.7		)
Income (loss) from continuing operations	(31.8		)	155.2			(34.8		)	(111.2		)	(22.6		)
Income (loss) from discontinued operations, net of taxes	—			(9.1		)	(0.1		)	—			(9.2		)
Net income (loss)	$	(31.8	)	$	146.1		$	(34.9	)	$	(111.2	)	$	(31.8	)



							100% Owned			Consolidating			Pinnacle
	Pinnacle			100% Owned			Non-			and			Entertainment,
	Entertainment,			Guarantor			Guarantor			Eliminating			Inc.
	Inc.			Subsidiaries(a)			Subsidiaries(b)			Entries			Consolidated
	(in millions)
For the year ended December 31, 2011
Revenues:
Gaming	$	—		$	997.6		$	—		$	—		$	997.6
Food and beverage	—			69.4			—			—			69.4
Other	0.1			74.1			—			—			74.2
	0.1			1,141.1			—			—			1,141.2
Expenses:
Gaming	—			575.3			—			—			575.3
Food and beverage	—			60.7			—			—			60.7
General and administrative and other	37.4			231.1			—			—			268.5
Depreciation and amortization	3.4			100.5			—			—			103.9
Write downs, reserves, recoveries and impairments	0.7			3.5			—			—			4.2
	41.5			971.1			—			—			1,012.6
Operating income (loss)	(41.4		)	170.0			—			—			128.6
Equity earnings of subsidiaries	127.8			—			—			(127.8		)	—
Loss on early extinguishment of debt	(0.2		)	—			—			—			(0.2		)
Loss from equity method investment	—			—			(0.6		)	—			(0.6		)
Interest (expense) and non-operating income, net	(105.7		)	7.0			3.4			—			(95.3		)
Income (loss) from continuing operations before inter-company activity and income taxes	(19.5		)	177.0			2.8			(127.8		)	32.5
Management fee and inter-company interest	19.3			(15.9		)	(3.4		)	—			_—
Income tax benefit	(2.3		)	—			—			—			(2.3		)
Income (loss) from continuing operations	(2.5		)	161.1			(0.6		)	(127.8		)	30.2
Income from discontinued operations, net of taxes	—			(32.9		)	0.2			—			(32.7		)
Net income (loss)	$	(2.5	)	$	128.2		$	(0.4	)	$	(127.8	)	$	(2.5	)



							100% Owned			Consolidating			Pinnacle
	Pinnacle			100% Owned			Non-			and			Entertainment,
	Entertainment,			Guarantor			Guarantor			Eliminating			Inc.
	Inc.			Subsidiaries(a)			Subsidiaries(b)			Entries			Consolidated
	(in millions)
For the year ended December 31, 2010
Revenues:
Gaming	$	—		$	932.9		$	—		$	—		$	932.9
Food and beverage	—			64.4			—			—			64.4
Other	0.4			60.9			—			—			61.3
	0.4			1,058.2			—			—			1,058.6
Expenses:
Gaming	—			541.1			—			—			541.1
Food and beverage	—			57.6			—			—			57.6
General and administrative and other	42.8			224.0			(0.6		)	—			266.2
Depreciation and amortization	5.3			104.3			0.1			—			109.7
Write downs, reserves, recoveries and impairments	(5.9		)	38.2			(0.5		)	—			31.8
	42.2			965.2			(1.0		)	—			1,006.4
Operating income (loss)	(41.8		)	93.0			1.0			—			52.2
Equity earnings of subsidiaries	99.6			2.1			—			(101.7		)	—
Loss on early extinguishment of debt	(1.9		)	—			—			—			(1.9		)
Interest (expense) and non-operating income, net	(105.6		)	2.8			—			—			(102.8		)
Income (loss) from continuing operations before inter-company activity and income taxes	(49.7		)	97.9			1.0			(101.7		)	(52.5		)
Management fee and inter-company interest	14.6			(14.6		)	—			—			—
Income tax benefit	11.7			—			—			—			11.7
Income (loss) from continuing operations	(23.4		)	83.3			1.0			(101.7		)	(40.8		)
Income (loss) from discontinued operations, net of taxes	—			15.8			1.6			—			17.4
Net income (loss)	$	(23.4	)	$	99.1		$	2.6		$	(101.7	)	$	(23.4	)



					100% Owned		Consolidating			Pinnacle
	Pinnacle		100% Owned		Non-		and			Entertainment,
	Entertainment,		Guarantor		Guarantor		Eliminating			Inc.
	Inc.		Subsidiaries(a)		Subsidiaries(b)		Entries			Consolidated
	(in millions)
Balance Sheets
As of December 31, 2012
Current assets, excluding discontinued operations	$	17.4	$	106.3	$	23.0	$	—		$	146.7
Property and equipment, net	21.7		1,672.8		1.5		—			1,696.0
Other non-current assets	47.4		74.5		14.4		—			136.3
Investment in subsidiaries	1,861.4		—		—		(1,861.4		)	—
Equity method investment	—		—		91.4		—			91.4
Assets of discontinued operations held for sale	—		38.6		0.7		(0.7		)	38.6
Inter-company	1.2		—		—		(1.2		)	—
	$	1,949.1	$	1,892.2	$	131.0	$	(1,863.3	)	$	2,109.0
Current liabilities, excluding discontinued operations	$	50.9	$	146.3	$	0.6	$	—		$	197.8
Notes payable, long term	1,437.3		—		—		—			1,437.3
Other non-current liabilities	13.8		12.7		0.3		—			26.8
Liabilities of discontinued operations held for sale	—		—		—		—			—
Inter-company	—		—		1.2		(1.2		)	—
Equity	447.1		1,733.2		128.9		(1,862.1		)	447.1
	$	1,949.1	$	1,892.2	$	131.0	$	(1,863.3	)	$	2,109.0

As of December 31, 2011
Current assets, excluding discontinued operations	$	23.2	$	78.6	$	15.2	$	—		$	117.0
Property and equipment, net	20.3		1,494.2		0.5		—			1,515.0
Other non-current assets	58.5		88.4		—		—			146.9
Investment in subsidiaries	1,692.9		—		—		(1,692.9		)	—
Equity method investment	—		—		97.8		—			97.8
Assets of discontinued operations held for sale	—		74.5		—		(0.6		)	73.9
Inter-company	1.2		—		—		(1.2		)	—
	$	1,796.1	$	1,735.7	$	113.5	$	(1,694.7	)	$	1,950.6
Current liabilities, excluding discontinued operations	$	38.8	$	140.0	$	0.3	$	—		$	179.1
Notes payable, long term	1,223.3		0.5		—		—			1,223.8
Other non-current liabilities	14.6		10.8		—		—			25.4
Liabilities of discontinued operations held for sale	—		2.9		—		—			2.9
Inter-company	—		—		1.2		(1.2		)	—
Equity	519.4		1,581.5		112.0		(1,693.5		)	519.4
	$	1,796.1	$	1,735.7	$	113.5	$	(1,694.7	)	$	1,950.6



							100% Owned			Consolidating			Pinnacle
	Pinnacle			100% Owned			Non-			and			Entertainment,
	Entertainment,			Guarantor			Guarantor			Eliminating			Inc.
	Inc.			Subsidiaries(a)			Subsidiaries(b)			Entries			Consolidated
	(in millions)
Statements of Cash Flows
For the year ended December 31, 2012
Cash provided by (used in) operating activities	$	(140.0	)	$	277.7		$	49.2		$	—		$	186.9
Capital expenditures and other	(8.5		)	(252.2		)	(41.4		)	—			(302.1		)
Cash provided by (used in) investing activities	(8.5		)	(252.2		)	(41.4		)	—			(302.1		)
Change in notes payable and other	136.7			—			—			—			136.7
Cash provided by financing activities	136.7			—			—			—			136.7
Increase (decrease) in cash and cash equivalents	(11.8		)	25.5			7.8			—			21.5
Cash and cash equivalents, beginning of period	17.3			48.0			15.0			—			80.3
Cash and cash equivalents, end of period	$	5.5		$	73.5		$	22.8		$	—		$	101.8

For the year ended December 31, 2011
Cash provided by (used in) operating activities	$	(95.0	)	$	190.4		$	(0.1	)	$	36.5		$	131.8
Capital expenditures and other	(11.1		)	(184.0		)	(98.2		)	—			(293.3		)
Cash provided by (used) in investing activities	(11.1		)	(184.0		)	(98.2		)	—			(293.3		)
Change in notes payable and other	46.4			—			36.5			(36.5		)	46.4
Cash provided by (used in) financing activities	46.4			—			36.5			(36.5		)	46.4
Increase (decrease) in cash and cash equivalents	(59.7		)	6.4			(61.8		)	—			(115.1		)
Cash and cash equivalents, beginning of period	77.0			41.6			76.8			—			195.4
Cash and cash equivalents, end of period	$	17.3		$	48.0		$	15.0		$	—		$	80.3

For the year ended December 31, 2010
Cash provided by (used in) operating activities	$	(32.0	)	$	160.7		$	(40.1	)	$	—		$	88.6
Capital expenditures and other	(0.7		)	(175.8		)	45.9			—			(130.6		)
Cash used in investing activities	(0.7		)	(175.8		)	45.9			—			(130.6		)
Change in notes payable and other	108.2			—			—			—			108.2
Cash provided by (used in) financing activities	108.2			—			—			—			108.2
Effect of exchange rate changes on cash	—			—			(0.4		)	—			(0.4		)
Increase (decrease) in cash and cash equivalents	75.5			(15.1		)	5.4			—			65.8
Cash and cash equivalents, beginning of period	1.5			56.7			71.4			—			129.6
Cash and cash equivalents, end of period	$	77.0		$	41.6		$	76.8		$	—		$	195.4


(a)	The following material subsidiaries are identified as guarantors of our senior and senior subordinated notes: ACE Gaming, LLC; AREP Boardwalk

Properties LLC; Belterra Resort Indiana, LLC; Boomtown, LLC; Casino Magic, LLC; Casino One Corporation; Louisiana-I Gaming; Mitre Associates LLC; PNK (Baton Rouge) Partnership; PNK (Biloxi), LLC; PNK (BOSSIER CITY), Inc.; PNK Development 7, LLC; PNK Development 8, LLC; PNK Development 9, LLC; PNK Development 13, LLC; PNK (ES), LLC; PNK (LAKE CHARLES), L.L.C.; PNK (Ohio), LLC; PNK (Ohio) II, LLC; PNK (Ohio) III, LLC; PNK (RENO), LLC; PNK (River City), LLC; PNK (SAM), LLC; PNK (SAZ), LLC; PNK (STLH), LLC; PNK (ST. LOUIS RE), LLC; and PSW Properties LLC. In addition, certain other immaterial subsidiaries are also guarantors of our senior and senior subordinated notes.

(b)

Guarantor subsidiaries of our senior and senior subordinated notes exclude; a subsidiary that owns a minority interest in ACDL; a subsidiary with $3.9 million in cash and cash equivalents as of December 31, 2012; a subsidiary with approximately $4.4 million in total assets as of December 31, 2012; a subsidiary with $25.2 million in total assets as of December 31, 2012; a subsidiary with $4.3 million in total assets as of December 31, 2012; and certain non-material subsidiaries.