Station Casinos announces Q1 2012 results

18 May 2012

LAS VEGAS, Nevada -- (PRESS RELEASE) -- Station Casinos LLC ("Station" or the “Company") today announced the results of its operations for the first quarter ended March 31, 2012.

“Our first quarter results were the best quarterly results we have achieved in three years. In addition to being able to drive significant revenue growth during the quarter, we were also able to bring 73% of the revenue increase to the bottom line”

“As we highlighted in our year-end financial results, 2011 marked a transition year for the Company as we completed our $2.8 billion restructuring on June 17, 2011. Throughout 2011, Station Casinos focused on rebuilding its brand and image with our team members and guests, and we expected 2012 to show improvements in our operating results and financial performance with a focus on margin improvement and flow through,” stated Marc Falcone, Executive Vice President and Chief Financial Officer. “During the first quarter, we experienced gains in revenue and operating income in all of our major departments,” said Falcone.

Consolidated Results of Operations

The Company's consolidated net revenues for the first quarter ended March 31, 2012 were approximately $318 million, an increase of 8.4% compared to the prior year of $293 million. Consolidated EBITDAM for the first quarter was $97.8 million, an increase of 20.9% compared to the prior year of $80.8 million. As a result, the Company posted an EBITDAM operating margin of 31.1% as compared to 27.8% in the prior year first quarter, a 330 basis point increase. “Our first quarter results were the best quarterly results we have achieved in three years. In addition to being able to drive significant revenue growth during the quarter, we were also able to bring 73% of the revenue increase to the bottom line,” said Falcone.

Guarantor Group Results of Operations

The net revenues for Station Casinos LLC and the subsidiaries that own Red Rock, Palace Station, Boulder Station and Sunset Station (the “Guarantor Group”) for the first quarter ended March 31, 2012 were approximately $171.5 million, an increase of 9.6% compared to the prior year. The Company reported EBITDAM for the Guarantor Group for the quarter of $55.9 million, an increase of 28.1% compared to the prior year. The EBITDAM operating margin for the Guarantor Group was 32.6% as compared to 27.9% in the prior year first quarter.

EBITDAM is not a generally accepted accounting principle (“GAAP”) measurement and is presented solely as a supplemental disclosure because the Company believes that it is a widely used measure of operating performance in the gaming industry and is a principal basis for valuation of gaming companies. EBITDAM is further defined in footnote 1.

Balance Sheet Items and Capital Expenditures

The outstanding principal balance of long-term debt was $2.3 billion on a consolidated basis (excluding a nonrecourse land loan of $107 million) and $1.65 billion for the Guarantor Group as of March 31, 2012. In the first quarter, the Company repaid approximately $44 million of debt. From June 17, 2011, the date the Company acquired assets from Station Casinos, Inc., on a consolidated basis, the Company has repaid over $110 million of debt.

For the quarter, total consolidated capital expenditures were $12.4 million, of which $6.5 million were for the Guarantor Group.

Graton

The Company continues to make significant progress on the Federated Indians of Graton Rancheria’s (the “Tribe”) project in Sonoma County California. The project is located 43 miles north of San Francisco on the Tribe’s reservation, which was taken into trust by the federal government in October 2010. On March 27, 2012, Governor Brown, on behalf of the State of California, signed a Class-III gaming compact with the Tribe, which was then ratified by both houses of the California legislature last week. The compact allows the Tribe to operate up to 3,000 slot machines and provides for not more than 15 percent of slot revenue to be shared with the State, local communities, and California’s non-gaming and limited-gaming tribes. The compact will be submitted to the Department of the Interior and the Secretary will have 45 days in which to approve, reject or allow the compact to become effective by operation of law. We anticipate starting construction on the project this summer and opening by the end of 2013.

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	Station Casinos announces Q1 2012 results 18 May 2012 <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 LLC ("Station" or the “Company") today announced the results of its operations for the first quarter ended March 31, 2012. “Our first quarter results were the best quarterly results we have achieved in three years. In addition to being able to drive significant revenue growth during the quarter, we were also able to bring 73% of the revenue increase to the bottom line” “As we highlighted in our year-end financial results, 2011 marked a transition year for the Company as we completed our $2.8 billion restructuring on June 17, 2011. Throughout 2011, Station Casinos focused on rebuilding its brand and image with our team members and guests, and we expected 2012 to show improvements in our operating results and financial performance with a focus on margin improvement and flow through,” stated Marc Falcone, Executive Vice President and Chief Financial Officer. “During the first quarter, we experienced gains in revenue and operating income in all of our major departments,” said Falcone. Consolidated Results of Operations The Company's consolidated net revenues for the first quarter ended March 31, 2012 were approximately $318 million, an increase of 8.4% compared to the prior year of $293 million. Consolidated EBITDAM for the first quarter was $97.8 million, an increase of 20.9% compared to the prior year of $80.8 million. As a result, the Company posted an EBITDAM operating margin of 31.1% as compared to 27.8% in the prior year first quarter, a 330 basis point increase. “Our first quarter results were the best quarterly results we have achieved in three years. In addition to being able to drive significant revenue growth during the quarter, we were also able to bring 73% of the revenue increase to the bottom line,” said Falcone. Guarantor Group Results of Operations The net revenues for Station Casinos LLC and the subsidiaries that own Red Rock, Palace Station, Boulder Station and Sunset Station (the “Guarantor Group”) for the first quarter ended March 31, 2012 were approximately $171.5 million, an increase of 9.6% compared to the prior year. The Company reported EBITDAM for the Guarantor Group for the quarter of $55.9 million, an increase of 28.1% compared to the prior year. The EBITDAM operating margin for the Guarantor Group was 32.6% as compared to 27.9% in the prior year first quarter. EBITDAM is not a generally accepted accounting principle (“GAAP”) measurement and is presented solely as a supplemental disclosure because the Company believes that it is a widely used measure of operating performance in the gaming industry and is a principal basis for valuation of gaming companies. EBITDAM is further defined in footnote 1. Balance Sheet Items and Capital Expenditures The outstanding principal balance of long-term debt was $2.3 billion on a consolidated basis (excluding a nonrecourse land loan of $107 million) and $1.65 billion for the Guarantor Group as of March 31, 2012. In the first quarter, the Company repaid approximately $44 million of debt. From June 17, 2011, the date the Company acquired assets from Station Casinos, Inc., on a consolidated basis, the Company has repaid over $110 million of debt. For the quarter, total consolidated capital expenditures were $12.4 million, of which $6.5 million were for the Guarantor Group. Graton The Company continues to make significant progress on the Federated Indians of Graton Rancheria’s (the “Tribe”) project in Sonoma County California. The project is located 43 miles north of San Francisco on the Tribe’s reservation, which was taken into trust by the federal government in October 2010. On March 27, 2012, Governor Brown, on behalf of the State of California, signed a Class-III gaming compact with the Tribe, which was then ratified by both houses of the California legislature last week. The compact allows the Tribe to operate up to 3,000 slot machines and provides for not more than 15 percent of slot revenue to be shared with the State, local communities, and California’s non-gaming and limited-gaming tribes. The compact will be submitted to the Department of the Interior and the Secretary will have 45 days in which to approve, reject or allow the compact to become effective by operation of law. We anticipate starting construction on the project this summer and opening by the end of 2013.