Station Casinos announces Q1 2015 results
11 May 2015
First Quarter Highlights
Net revenues increased 5% and Adjusted EBITDAM increased 12.5% compared to the prior year period.
Adjusted EBITDAM margin increased 240 basis points to 36.4% compared to the prior year period.
Eighth consecutive quarter of year-over-year net revenue growth and sixteenth consecutive quarter of year-over-year Adjusted EBITDAM growth.
Same-store Las Vegas net revenues increased 4.5% and Adjusted EBITDAM increased 11% compared to the prior year period.
Native American management fees contributed $14.4 million to Adjusted EBITDAM, an increase of 21% compared to the prior year period.
“We are pleased to report that Station Casinos is off to a strong start in 2015, as net revenues increased 5% and Adjusted EBITDAM increased 12.5% compared to the prior year period,” said Marc Falcone, Executive Vice President, Chief Financial Officer and Treasurer. “We generated $124.6 million in Adjusted EBITDAM for the quarter, our sixteenth consecutive quarter of year-over-year growth and our highest reported Adjusted EBITDAM and Adjusted EBITDAM margin since the first quarter of 2008. In addition, our operational strength and efficiencies have led to a 700 basis point improvement in same-store margins from the trough in 2011.”
Results of Operations
The Company’s consolidated net revenues for the quarter ended March 31, 2015 were $342.8 million, an increase of 5% compared to the prior year. Adjusted EBITDAM for the quarter increased $13.8 million, or 12.5%, to $124.6 million. Our Adjusted EBITDAM margin for the quarter was 36.4%, an increase of 240 basis points.
Consumer confidence and spending levels showed further strength during the first quarter which contributed to a 4.5% increase in same-store Las Vegas net revenues compared to the prior year. The revenue increase was broad-based, with growth in casino, hotel and food and beverage. Same-store Las Vegas Adjusted EBITDAM increased 11% and margins rose to 34.6%, a 190 basis point improvement over the prior year. Results from the two Native American properties managed by the Company were also strong on a same-store basis, increasing 21% and contributing $14.4 million to Adjusted EBITDAM.
Adjusted 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. Adjusted EBITDAM is further defined in footnote 1.
Balance Sheet Highlights
As of March 31, 2015, the outstanding principal balance of the Company’s long-term debt was $2.0 billion (excluding a non-recourse land loan of $113.7 million) and cash and cash equivalents were $104.7 million. Pursuant to the terms of our credit agreement, we made our annual excess cash flow payment of $61.0 million to our term loan lenders on March 16, 2015. As of March 31, 2015, our debt (net of excess cash) to Adjusted EBITDAM ratio was approximately 4.7 times, excluding the non-recourse land loan.
“Our significant cash flow and disciplined capital programs have allowed us to meaningfully reduce debt and improve leverage over the past several years, positioning our balance sheet as one of the strongest in the gaming industry today,” concluded Mr. Falcone.
Fertitta Interactive
Ultimate Gaming ceased operations in November 2014. The operating results of Fertitta Interactive are presented in discontinued operations for all periods.
Conference Call Information
The Company will host a conference call on May 11, 2015 at 10:00 a.m..