Station Casino reports results

9 May 2007

LAS VEGAS, Nevada -- (PRESS RELEASE) -- Station Casinos, Inc. (NYSE: STN - News; "Station" or the "Company") today announced the results of its operations for the first quarter ended March 31, 2007 and other Company-related news.

Notable events include:

Station's Board of Directors approved a $90 per share buy-out offer.
First quarter EBITDA (1) of $152.3 million, an increase of 15% over the prior year's first quarter.
Net revenues from its Major Las Vegas Operations, excluding Green Valley Ranch, increased 32% from the prior year's first quarter.
Adjusted for non-recurring items and development expenses, diluted earnings per share ("EPS") of $0.51 compared to $0.78 in the prior year's first quarter, a decrease of 35%.
Declaring a quarterly cash dividend of $0.2875 per share payable on June 4, 2007 to shareholders of record on May 21, 2007.

Results of Operations

The Company's net revenues for the first quarter ended March 31, 2007 were approximately $372.4 million, an increase of 27% compared to the prior year's first quarter. The Company reported EBITDA for the quarter of $152.3 million, an increase of 15% compared to the prior year's first quarter. This marks the twenty-first consecutive quarter of year-over-year growth of Adjusted EBITDA. For the first quarter, Adjusted Earnings (2) applicable to common stock were $28.7 million, or $0.51 per diluted share, compared to last year's $0.78 per diluted share on a comparable basis.

During the first quarter, the Company incurred $2.3 million in costs to develop new gaming opportunities, primarily related to Native American gaming, $4.8 million related to costs associated with the FCP transaction noted below and $0.8 million of other non-recurring costs. Including these items, the Company reported net income of $23.1 million and diluted earnings applicable to common stock of $0.41 per share.

The Company's earnings from its Green Valley Ranch joint venture for the first quarter were $13.3 million, 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 $29.2 million, a 3% decrease compared to the prior year's first quarter.

Las Vegas Market Results

For the first quarter, net revenues from the Major Las Vegas Operations, excluding Green Valley Ranch, increased to $335.0 million, a 32% increase compared to the prior year's quarter, while EBITDA from those operations increased 19% to $129.8 million.

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 $3.30 billion as of March 31, 2007. Total capital expenditures were $138.0 million for the first quarter. Expansion and project capital expenditures included $35.2 million for Phases II and III of Red Rock Resort, $11.5 million for the expansion of Santa Fe Station and $32.7 million for the purchase of land. As of March 31, 2007, the Company's debt to cash flow ratio, as defined in its bank credit facility, was 5.7 to 1.

Dividend

On May 7, 2007 the Company's Board of Directors declared a quarterly cash dividend of $0.2875 per share. The dividend is payable on June 4, 2007 to shareholders of record on May 21, 2007.

Proposed Merger

On February 23, 2007, the Company entered into a definitive merger agreement with Fertitta Colony Partners LLC ("FCP"), pursuant to which FCP agreed to acquire all of Station's outstanding common stock for $90 per share in cash. FCP is a new company formed by Frank J. Fertitta III, Chairman and Chief Executive Officer of Station, Lorenzo J. Fertitta, Vice Chairman and President of Station and Colony Capital Acquisitions, LLC, an affiliate of Colony Capital, LLC. On May 7, 2007, Station filed a preliminary proxy statement and related materials with the Securities and Exchange Commission that provides details about the pending sale of the Company.

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	Station Casino reports results 9 May 2007 <a href='https://ad.casinocity.com/adclick.php?n=a21efcd1'><img src='https://ad.casinocity.com/adview.php?what=-site:vendors/width:250/RON&n=a21efcd1' border='0' alt='' /></a> LAS VEGAS, Nevada -- (PRESS RELEASE) -- Station Casinos, Inc. (NYSE: STN - News; "Station" or the "Company") today announced the results of its operations for the first quarter ended March 31, 2007 and other Company-related news. Notable events include: Station's Board of Directors approved a $90 per share buy-out offer. First quarter EBITDA (1) of $152.3 million, an increase of 15% over the prior year's first quarter. Net revenues from its Major Las Vegas Operations, excluding Green Valley Ranch, increased 32% from the prior year's first quarter. Adjusted for non-recurring items and development expenses, diluted earnings per share ("EPS") of $0.51 compared to $0.78 in the prior year's first quarter, a decrease of 35%. Declaring a quarterly cash dividend of $0.2875 per share payable on June 4, 2007 to shareholders of record on May 21, 2007. Results of Operations The Company's net revenues for the first quarter ended March 31, 2007 were approximately $372.4 million, an increase of 27% compared to the prior year's first quarter. The Company reported EBITDA for the quarter of $152.3 million, an increase of 15% compared to the prior year's first quarter. This marks the twenty-first consecutive quarter of year-over-year growth of Adjusted EBITDA. For the first quarter, Adjusted Earnings (2) applicable to common stock were $28.7 million, or $0.51 per diluted share, compared to last year's $0.78 per diluted share on a comparable basis. During the first quarter, the Company incurred $2.3 million in costs to develop new gaming opportunities, primarily related to Native American gaming, $4.8 million related to costs associated with the FCP transaction noted below and $0.8 million of other non-recurring costs. Including these items, the Company reported net income of $23.1 million and diluted earnings applicable to common stock of $0.41 per share. The Company's earnings from its Green Valley Ranch joint venture for the first quarter were $13.3 million, 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 $29.2 million, a 3% decrease compared to the prior year's first quarter. Las Vegas Market Results For the first quarter, net revenues from the Major Las Vegas Operations, excluding Green Valley Ranch, increased to $335.0 million, a 32% increase compared to the prior year's quarter, while EBITDA from those operations increased 19% to $129.8 million. 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 $3.30 billion as of March 31, 2007. Total capital expenditures were $138.0 million for the first quarter. Expansion and project capital expenditures included $35.2 million for Phases II and III of Red Rock Resort, $11.5 million for the expansion of Santa Fe Station and $32.7 million for the purchase of land. As of March 31, 2007, the Company's debt to cash flow ratio, as defined in its bank credit facility, was 5.7 to 1. Dividend On May 7, 2007 the Company's Board of Directors declared a quarterly cash dividend of $0.2875 per share. The dividend is payable on June 4, 2007 to shareholders of record on May 21, 2007. Proposed Merger On February 23, 2007, the Company entered into a definitive merger agreement with Fertitta Colony Partners LLC ("FCP"), pursuant to which FCP agreed to acquire all of Station's outstanding common stock for $90 per share in cash. FCP is a new company formed by Frank J. Fertitta III, Chairman and Chief Executive Officer of Station, Lorenzo J. Fertitta, Vice Chairman and President of Station and Colony Capital Acquisitions, LLC, an affiliate of Colony Capital, LLC. On May 7, 2007, Station filed a preliminary proxy statement and related materials with the Securities and Exchange Commission that provides details about the pending sale of the Company.