Pinnacle Entertainment (PNKZV) 10-K 2004 FY Annual report

Exhibit 11.1

Pinnacle Entertainment, Inc.

Computation of Per Share Earnings

	For the three months ended December 31,
	Basic									Diluted (a)
	2004			2003			2002			2004			2003			2002
	(in thousands, except per share data—unaudited)
Average number of common shares outstanding		36,308			25,643			25,929			36,308			25,643			25,929
Average common shares due to assumed conversion of stock options		0			0			0			1,871			360			38
Total shares		36,308			25,643			25,929			38,179			26,003			25,967
Net loss	$	(4,774	)	$	(8,614	)	$	(6,693	)	$	(4,774	)	$	(8,614	)	$	(6,693	)
Net loss per share	$	(0.13	)	$	(0.34	)	$	(0.26	)	$	(0.13	)	$	(0.33	)	$	(0.26	)
	For the years ended December 31,
	Basic									Diluted (a)
	2004			2003			2002			2004			2003			2002
	(in thousands, except per share data—unaudited)
Average number of common shares outstanding		34,730			25,861			25,773			34,730			25,861			25,773
Average common shares due to assumed conversion of stock options		0			0			0			1,440			77			142
Total shares		34,730			25,861			25,773			36,170			25,938			25,915
Net income (loss) before cumulative effect of a change in accounting principle	$	9,161		$	(28,242	)	$	(12,925	)	$	9,161		$	(28,242	)	$	(12,925	)
Cumulative effect of a change in accounting principle		0			0			(56,704	)		0			0			(56,704	)
Net income (loss)	$	9,161		$	(28,242	)	$	(69,629	)	$	9,161		$	(28,242	)	$	(69,629	)
Net income (loss) before change in accounting principle	$	0.26		$	(1.09	)	$	(0.50	)	$	0.25		$	(1.09	)	$	(0.50	)
Change in accounting principle, net of income taxes		0.00			0.00			2.20			0.00			0.00			2.19
Net income (loss)	$	0.26		$	(1.09	)	$	(2.70	)	$	0.25		$	(1.09	)	$	(2.69	)

(a) When the computed diluted values are anti-dilutive, the basic per share values are presented on the face of the consolidated statements of operations.