Station Casino Reports Record Results

18 Oct 2005

LAS VEGAS -- (PRESS RELEASE) -- Station Casinos, Inc. (NYSE:STN) today announced the results of its operations for the third quarter ended September 30, 2005.

Highlights include:

-Same-store revenues from its Las Vegas operations increased 16% over the prior year's third quarter, marking the seventh consecutive quarter of double-digit same-store revenue growth on a year-over-year basis. Excluding Green Valley Ranch, revenues from its Major Las Vegas Operations increased 13% over the prior year's third quarter.

-Record third quarter EBITDA(1) of $117.8 million, an increase of 30% over the prior year's third quarter.

-Same-store EBITDA from its Las Vegas operations increased 30% over the prior year's third quarter.

-Adjusted for non-recurring items and development expense, diluted earnings per share ("EPS") of $0.63 compared to $0.46 in the prior year's third quarter, an increase of 37%.

-Same-store EBITDA margins for its Las Vegas operations increased to 40.7% from 36.3% in the prior year's third quarter.

-Declaring a quarterly cash dividend of $0.25 per share payable on December 2, 2005, to shareholders of record on November 11, 2005.

Results of Operations

The Company's net revenues for the third quarter ended September 30, 2005, were approximately $276.3 million, an increase of 14% compared to the prior year's third quarter. The Company reported EBITDA for the quarter of $117.8 million, an increase of 30% compared to the prior year's third quarter. For the third quarter, Adjusted Earnings(2) applicable to common stock were $44.2 million, or $0.63 per share, an increase of 37% over the prior year's $0.46 per share on a comparable basis. This marks the fifteenth consecutive quarter of year-over-year growth of Adjusted EBITDA, EBITDA margin and EPS.

During the third quarter, the Company incurred preopening costs related to projects under development of $1.7 million, a $3.4 million loss on the disposition of land, a $0.6 million loss on the early retirement of debt, $0.3 million in costs to terminate certain leases at Green Valley Ranch and $2.0 million in costs to develop new gaming opportunities, primarily related to Native American gaming. Including these items, the Company reported net income of $39.0 million and diluted earnings applicable to common stock of $0.56 per share.

The Company's earnings from its Green Valley Ranch joint venture for the third quarter were $10.7 million, excluding the lease termination costs, which represents a combination of the Company's management fee plus 50% of Green Valley Ranch's operating income. For the quarter, Green Valley Ranch generated EBITDA before management fees of $24.4 million, a 29% increase compared to the prior year's third quarter. These numbers include results from the $125 million expansion of that property, which opened in December 2004 and included approximately 300 new hotel rooms and 25,000 square feet of additional meeting and convention space.

Las Vegas Market Results

Same-store (Major Las Vegas Operations and Green Valley Ranch) net revenues for the quarter increased to $300.0 million, a 16% increase compared to the prior year's quarter, while EBITDA from those operations increased 30% to $122.2 million. "Our seventh consecutive quarter of double-digit same-store revenue growth was driven by the continued strength of the Las Vegas economy. We have not seen changes in consumer behavior in the Las Vegas local's market. All of the key metrics that influence our business were very robust during the third quarter including population growth, new job creation and extensive commercial and residential construction," said Lorenzo J. Fertitta, vice chairman and president.

EBITDA and Adjusted Earnings are not generally accepted accounting principles ("GAAP") measurements and are presented solely as a supplemental disclosure because the Company believes that they are widely used measures of operating performance in the gaming industry and as a principal basis for valuation of gaming companies. EBITDA and Adjusted Earnings are further defined in footnotes 1 and 2, respectively.

Balance Sheet Items and Capital Expenditures

Long-term debt was $1.74 billion as of September 30, 2005. Total capital expenditures were $260.5 million for the third quarter. Expansion and project capital expenditures included $173.9 million for Red Rock Resort and $43.5 million for the purchase of land. As of September 30, 2005, the Company's debt to cash flow ratio as defined in its bank credit facility was 3.9 to 1.

Dividend

The Company's Board of Directors declared a quarterly cash dividend of $0.25 per share. The dividend is payable on December 2, 2005, to shareholders of record on November 11, 2005.

Fiscal 2005 and 2006 Guidance

For the fourth quarter of 2005, the Company expects EBITDA of approximately $115 million to $120 million and EPS of $0.59 to $0.64, excluding development expense and other non-recurring items. The guidance for the fourth quarter assumes approximately $7 million of construction disruption relating to the Santa Fe Station, Fiesta Henderson and Green Valley Ranch master-planned expansions. The projected revenue growth for the fourth quarter is 9% to 11% excluding the impact of the construction disruption. Including the impact of the construction disruption, the projected revenue growth for the fourth quarter is 6% to 8%. As a result, the Company now expects EBITDA for 2005 of approximately $472 million to $477 million, excluding development expense and non-recurring items and Adjusted Earnings applicable to common stock of approximately $2.57 to $2.62, assuming 69.5 million fully diluted shares. The full year guidance assumes revenue growth in the Major Las Vegas Operations (excluding Green Valley Ranch) for 2005 of 11% to 12% over the prior year, with an effective tax rate of 36.9%.

The Company previously issued guidance for fiscal 2006 of approximately $545 million to $565 million of EBITDA and $2.70 to $2.89 of EPS, assuming approximately $16 million of construction disruption relating to the Santa Fe Station, Fiesta Henderson and Green Valley Ranch master-planned expansions. The Company intends to update this guidance on its fourth quarter conference call. This guidance also assumes the opening of Phase I of Red Rock Resort at the end of the first quarter of 2006, the completion of the Fiesta Henderson expansion in the third quarter of 2006, the completion of the Santa Fe Station expansion in phases beginning in the third quarter of 2006 through the fourth quarter of 2006 and the completion of the Green Valley Ranch expansion from the fourth quarter of 2006 through early 2007. This guidance further assumes an effective tax rate of 36.5% and 70 million diluted shares outstanding.

Language: Any Language Location: Currency: > edit my preferences Home Online Slots Live Dealer Games Online Casinos Online Poker Online Bingo Games Lotteries Sports & Racebooks Fantasy Sports Forex Betting Exchanges Spread Betting Binary Options Exclusive Bonuses Weekly Newsletter Online Gaming News Payment Methods Gaming Software Gaming Site Owners Gaming Jurisdictions		Bonuses! New games! Gossip! And all the player news you can handle. Sign up NOW! View the current issue
	Station Casino Reports Record Results 18 Oct 2005 LAS VEGAS -- (PRESS RELEASE) -- Station Casinos, Inc. (NYSE:STN) today announced the results of its operations for the third quarter ended September 30, 2005. Highlights include: -Same-store revenues from its Las Vegas operations increased 16% over the prior year's third quarter, marking the seventh consecutive quarter of double-digit same-store revenue growth on a year-over-year basis. Excluding Green Valley Ranch, revenues from its Major Las Vegas Operations increased 13% over the prior year's third quarter. -Record third quarter EBITDA(1) of $117.8 million, an increase of 30% over the prior year's third quarter. -Same-store EBITDA from its Las Vegas operations increased 30% over the prior year's third quarter. -Adjusted for non-recurring items and development expense, diluted earnings per share ("EPS") of $0.63 compared to $0.46 in the prior year's third quarter, an increase of 37%. -Same-store EBITDA margins for its Las Vegas operations increased to 40.7% from 36.3% in the prior year's third quarter. -Declaring a quarterly cash dividend of $0.25 per share payable on December 2, 2005, to shareholders of record on November 11, 2005. Results of Operations The Company's net revenues for the third quarter ended September 30, 2005, were approximately $276.3 million, an increase of 14% compared to the prior year's third quarter. The Company reported EBITDA for the quarter of $117.8 million, an increase of 30% compared to the prior year's third quarter. For the third quarter, Adjusted Earnings(2) applicable to common stock were $44.2 million, or $0.63 per share, an increase of 37% over the prior year's $0.46 per share on a comparable basis. This marks the fifteenth consecutive quarter of year-over-year growth of Adjusted EBITDA, EBITDA margin and EPS. During the third quarter, the Company incurred preopening costs related to projects under development of $1.7 million, a $3.4 million loss on the disposition of land, a $0.6 million loss on the early retirement of debt, $0.3 million in costs to terminate certain leases at Green Valley Ranch and $2.0 million in costs to develop new gaming opportunities, primarily related to Native American gaming. Including these items, the Company reported net income of $39.0 million and diluted earnings applicable to common stock of $0.56 per share. The Company's earnings from its Green Valley Ranch joint venture for the third quarter were $10.7 million, excluding the lease termination costs, which represents a combination of the Company's management fee plus 50% of Green Valley Ranch's operating income. For the quarter, Green Valley Ranch generated EBITDA before management fees of $24.4 million, a 29% increase compared to the prior year's third quarter. These numbers include results from the $125 million expansion of that property, which opened in December 2004 and included approximately 300 new hotel rooms and 25,000 square feet of additional meeting and convention space. Las Vegas Market Results Same-store (Major Las Vegas Operations and Green Valley Ranch) net revenues for the quarter increased to $300.0 million, a 16% increase compared to the prior year's quarter, while EBITDA from those operations increased 30% to $122.2 million. "Our seventh consecutive quarter of double-digit same-store revenue growth was driven by the continued strength of the Las Vegas economy. We have not seen changes in consumer behavior in the Las Vegas local's market. All of the key metrics that influence our business were very robust during the third quarter including population growth, new job creation and extensive commercial and residential construction," said Lorenzo J. Fertitta, vice chairman and president. EBITDA and Adjusted Earnings are not generally accepted accounting principles ("GAAP") measurements and are presented solely as a supplemental disclosure because the Company believes that they are widely used measures of operating performance in the gaming industry and as a principal basis for valuation of gaming companies. EBITDA and Adjusted Earnings are further defined in footnotes 1 and 2, respectively. Balance Sheet Items and Capital Expenditures Long-term debt was $1.74 billion as of September 30, 2005. Total capital expenditures were $260.5 million for the third quarter. Expansion and project capital expenditures included $173.9 million for Red Rock Resort and $43.5 million for the purchase of land. As of September 30, 2005, the Company's debt to cash flow ratio as defined in its bank credit facility was 3.9 to 1. Dividend The Company's Board of Directors declared a quarterly cash dividend of $0.25 per share. The dividend is payable on December 2, 2005, to shareholders of record on November 11, 2005. Fiscal 2005 and 2006 Guidance For the fourth quarter of 2005, the Company expects EBITDA of approximately $115 million to $120 million and EPS of $0.59 to $0.64, excluding development expense and other non-recurring items. The guidance for the fourth quarter assumes approximately $7 million of construction disruption relating to the Santa Fe Station, Fiesta Henderson and Green Valley Ranch master-planned expansions. The projected revenue growth for the fourth quarter is 9% to 11% excluding the impact of the construction disruption. Including the impact of the construction disruption, the projected revenue growth for the fourth quarter is 6% to 8%. As a result, the Company now expects EBITDA for 2005 of approximately $472 million to $477 million, excluding development expense and non-recurring items and Adjusted Earnings applicable to common stock of approximately $2.57 to $2.62, assuming 69.5 million fully diluted shares. The full year guidance assumes revenue growth in the Major Las Vegas Operations (excluding Green Valley Ranch) for 2005 of 11% to 12% over the prior year, with an effective tax rate of 36.9%. The Company previously issued guidance for fiscal 2006 of approximately $545 million to $565 million of EBITDA and $2.70 to $2.89 of EPS, assuming approximately $16 million of construction disruption relating to the Santa Fe Station, Fiesta Henderson and Green Valley Ranch master-planned expansions. The Company intends to update this guidance on its fourth quarter conference call. This guidance also assumes the opening of Phase I of Red Rock Resort at the end of the first quarter of 2006, the completion of the Fiesta Henderson expansion in the third quarter of 2006, the completion of the Santa Fe Station expansion in phases beginning in the third quarter of 2006 through the fourth quarter of 2006 and the completion of the Green Valley Ranch expansion from the fourth quarter of 2006 through early 2007. This guidance further assumes an effective tax rate of 36.5% and 70 million diluted shares outstanding.