Station Casinos Q3 Results Up

19 Oct 2004

LAS VEGAS -- (PRESS RELEASE) -- Station Casinos, Inc. (NYSE: STN) today announced the results of its operations for the third quarter ended September 30, 2004.

Highlights for the quarter include:

-Adjusted for non-recurring items, diluted earnings per share of $0.46 compared to $0.35 in the prior year's third quarter, an increase of 31%.

-Record third quarter EBITDA (1) of $90.7 million, an increase of 19% over the prior year's third quarter.

-Same-store (2) revenues from the Las Vegas operations increased 14% over the prior year's third quarter, marking the third consecutive quarter of double-digit same-store revenue growth.

-Same-store EBITDA from the Las Vegas operations increased 27% over the prior year's third quarter.

-Same-store EBITDA margins for the Las Vegas operations increased to 36.3% from 32.5% in the prior year's third quarter.

-Declaring a 20% increase in its quarterly cash dividend, with the next quarterly dividend of $0.21 per share payable on December 3, 2004.

-The United Auburn Indian Community added approximately 800 slot machines at Thunder Valley Casino located outside of Sacramento, California, which represents an increase of over 40% in the number of slot machines at the property.

Results of Operations

The Company's net revenues for the third quarter ended September 30, 2004 were approximately $242.9 million, an increase of 11% compared to the prior year's third quarter. The Company reported EBITDA for the quarter of $90.7 million, an increase of 19% compared to the prior year's quarter. For the third quarter, Adjusted Earnings (3) applicable to common stock were $31.1 million, or $0.46 per share, an increase of 31% over the prior year's $0.35 per share on a comparable basis. This marks the eleventh consecutive quarter of year over year growth of Adjusted EBITDA, EBITDA margin and EPS.

Non-recurring items for the quarter included $0.8 million for the net settlement of certain litigation and the payment of a fine and investigative costs related to violations of Nevada Gaming Commission Regulation 6A. In addition, the Company incurred preopening costs related to Red Rock Station of $0.2 million and $2.1 million in costs to develop new gaming opportunities, primarily related to Native American gaming. Including these items, the Company reported net income of $29.1 million and earnings applicable to common stock of $0.43 per share.

For the quarter ended September 30, 2004, the Company reported earnings from its Green Valley Ranch Station joint venture of $8.3 million, which represents a combination of Station's management fee plus 50% of Green Valley Ranch Station's operating income. Green Valley Ranch Station generated EBITDA before management fees of $18.9 million, a 29% increase compared to the prior year's quarter.

Las Vegas Market Results

Same-store (Major Las Vegas Operations and Green Valley Ranch Station) net revenues for the quarter increased to $257.7 million, a 14% increase compared to the prior year's quarter, while EBITDA from those operations increased 27% to $93.7 million. "Our third consecutive quarter of double-digit same-store revenue growth demonstrates the strength of the Las Vegas economy. We continue to benefit from significant population growth and substantial development in the community, including new housing. These factors, combined with no new supply in the locals' market, give us confidence in our guidance of 10% to 12% same-store revenue growth for the fourth quarter of 2004," said Glenn C. Christenson, executive vice president and chief financial officer.

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 3, respectively.

Balance Sheet Items and Capital Expenditures

Long-term debt was $1.28 billion as of September 30, 2004, net of cash held in marketable securities of $5.5 million. Total capital expenditures totaled $91.8 million for the third quarter, which included maintenance capital expenditures of $8.1 million. Expansion and project capital expenditures were $83.7 million, including $25.6 million for Red Rock Station, $6.0 million for the master planned expansion at Santa Fe Station, $3.2 million for the bowling center at Sunset Station, $10.9 million for the accelerated replacement of ticket-in ticket-out slot machines and $18.6 million for the purchase and enhancements of the Gold Rush and Magic Star casinos. As of September 30, 2004, the Company's debt to cash flow ratio as defined in its bank credit facility was 3.6 to 1.

Fourth Quarter 2004 Guidance

The Company expects EBITDA of approximately $94 million to $98 million for the fourth quarter of 2004 (excluding development expense and other non-recurring items). This would result in earnings per share ("EPS") of $0.48 to $0.52 for the fourth quarter of 2004 assuming 68 million fully diluted shares. This guidance assumes revenue growth for the fourth quarter of 2004 of 10% to 12% in Las Vegas (including Green Valley Ranch Station) with an effective tax rate of 37%.

For 2004, the Company expects EBITDA of approximately $372 million to $376 million (excluding development expense and non-recurring items) and Adjusted Earnings applicable to common stock of approximately $1.94 to $1.98 assuming 67 million fully diluted shares.

Dividend

On October 18, 2004, the Company's Board of Directors declared a 20% increase in its quarterly cash dividend to $0.21 per share. The dividend is payable on December 3, 2004 to shareholders of record on November 12, 2004. "Our strong operational performance and significant free cash flows allow us to provide significant cash returns to our shareholders while continuing to grow the business through new unit development and master-planned expansions. This is the second time since we instituted a dividend in 2003 that we have increased the amount returned to shareholders as a result of the strength of our operations," said Christenson.

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	Station Casinos Q3 Results Up 19 Oct 2004 LAS VEGAS -- (PRESS RELEASE) -- Station Casinos, Inc. (NYSE: STN) today announced the results of its operations for the third quarter ended September 30, 2004. Highlights for the quarter include: -Adjusted for non-recurring items, diluted earnings per share of $0.46 compared to $0.35 in the prior year's third quarter, an increase of 31%. -Record third quarter EBITDA (1) of $90.7 million, an increase of 19% over the prior year's third quarter. -Same-store (2) revenues from the Las Vegas operations increased 14% over the prior year's third quarter, marking the third consecutive quarter of double-digit same-store revenue growth. -Same-store EBITDA from the Las Vegas operations increased 27% over the prior year's third quarter. -Same-store EBITDA margins for the Las Vegas operations increased to 36.3% from 32.5% in the prior year's third quarter. -Declaring a 20% increase in its quarterly cash dividend, with the next quarterly dividend of $0.21 per share payable on December 3, 2004. -The United Auburn Indian Community added approximately 800 slot machines at Thunder Valley Casino located outside of Sacramento, California, which represents an increase of over 40% in the number of slot machines at the property. Results of Operations The Company's net revenues for the third quarter ended September 30, 2004 were approximately $242.9 million, an increase of 11% compared to the prior year's third quarter. The Company reported EBITDA for the quarter of $90.7 million, an increase of 19% compared to the prior year's quarter. For the third quarter, Adjusted Earnings (3) applicable to common stock were $31.1 million, or $0.46 per share, an increase of 31% over the prior year's $0.35 per share on a comparable basis. This marks the eleventh consecutive quarter of year over year growth of Adjusted EBITDA, EBITDA margin and EPS. Non-recurring items for the quarter included $0.8 million for the net settlement of certain litigation and the payment of a fine and investigative costs related to violations of Nevada Gaming Commission Regulation 6A. In addition, the Company incurred preopening costs related to Red Rock Station of $0.2 million and $2.1 million in costs to develop new gaming opportunities, primarily related to Native American gaming. Including these items, the Company reported net income of $29.1 million and earnings applicable to common stock of $0.43 per share. For the quarter ended September 30, 2004, the Company reported earnings from its Green Valley Ranch Station joint venture of $8.3 million, which represents a combination of Station's management fee plus 50% of Green Valley Ranch Station's operating income. Green Valley Ranch Station generated EBITDA before management fees of $18.9 million, a 29% increase compared to the prior year's quarter. Las Vegas Market Results Same-store (Major Las Vegas Operations and Green Valley Ranch Station) net revenues for the quarter increased to $257.7 million, a 14% increase compared to the prior year's quarter, while EBITDA from those operations increased 27% to $93.7 million. "Our third consecutive quarter of double-digit same-store revenue growth demonstrates the strength of the Las Vegas economy. We continue to benefit from significant population growth and substantial development in the community, including new housing. These factors, combined with no new supply in the locals' market, give us confidence in our guidance of 10% to 12% same-store revenue growth for the fourth quarter of 2004," said Glenn C. Christenson, executive vice president and chief financial officer. 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 3, respectively. Balance Sheet Items and Capital Expenditures Long-term debt was $1.28 billion as of September 30, 2004, net of cash held in marketable securities of $5.5 million. Total capital expenditures totaled $91.8 million for the third quarter, which included maintenance capital expenditures of $8.1 million. Expansion and project capital expenditures were $83.7 million, including $25.6 million for Red Rock Station, $6.0 million for the master planned expansion at Santa Fe Station, $3.2 million for the bowling center at Sunset Station, $10.9 million for the accelerated replacement of ticket-in ticket-out slot machines and $18.6 million for the purchase and enhancements of the Gold Rush and Magic Star casinos. As of September 30, 2004, the Company's debt to cash flow ratio as defined in its bank credit facility was 3.6 to 1. Fourth Quarter 2004 Guidance The Company expects EBITDA of approximately $94 million to $98 million for the fourth quarter of 2004 (excluding development expense and other non-recurring items). This would result in earnings per share ("EPS") of $0.48 to $0.52 for the fourth quarter of 2004 assuming 68 million fully diluted shares. This guidance assumes revenue growth for the fourth quarter of 2004 of 10% to 12% in Las Vegas (including Green Valley Ranch Station) with an effective tax rate of 37%. For 2004, the Company expects EBITDA of approximately $372 million to $376 million (excluding development expense and non-recurring items) and Adjusted Earnings applicable to common stock of approximately $1.94 to $1.98 assuming 67 million fully diluted shares. Dividend On October 18, 2004, the Company's Board of Directors declared a 20% increase in its quarterly cash dividend to $0.21 per share. The dividend is payable on December 3, 2004 to shareholders of record on November 12, 2004. "Our strong operational performance and significant free cash flows allow us to provide significant cash returns to our shareholders while continuing to grow the business through new unit development and master-planned expansions. This is the second time since we instituted a dividend in 2003 that we have increased the amount returned to shareholders as a result of the strength of our operations," said Christenson.

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Station Casinos Q3 Results Up