Station Casinos Raises Guidance

15 Mar 2005

LAS VEGAS -- (PRESS RELEASE) -- Station Casinos, Inc. (NYSE:STN) today raised its guidance for the first quarter ending March 31, 2005 and announced an acceleration of the Phase II expansion of Red Rock Resort Spa and Casino ("Red Rock").

First Quarter Guidance

Based on the strength of the Las Vegas economy and strong same store revenues, the Company now believes that, prior to development and preopening expenses and certain non-recurring items, EBITDA (1) and adjusted earnings per share ("EPS") (2) for the first quarter of 2005 will exceed its previously issued guidance of $107 million to $113 million and $0.56 to $0.62, respectively. The Company now believes that EBITDA for the quarter will be between $117 million and $119 million and EPS will be between $0.66 and $0.68. The increase is due to higher than anticipated same store revenues driving higher than anticipated EBITDA margins at our Major Las Vegas Operations (3). While the Company's original guidance provided for 9% to 13% same store revenue growth at the Major Las Vegas Operations (excluding Green Valley Ranch) in the 2005 first quarter, the Company now believes that same store revenue growth will be near the top end of this range. "Our strategic decision several years ago to focus on the locals market in Las Vegas continues to drive shareholder value through our exceptional operating results and return on invested capital," said Glenn Christenson, executive vice president and chief financial officer.

In addition, the Company anticipates that Green Valley Ranch will generate $26 million to $27 million of EBITDA in the first quarter of 2005 compared to $17.7 million in the first quarter of 2004. The Company also anticipates that Green Valley Ranch's revenues for the first quarter will increase by 39% to 43% over the prior year first quarter. In December 2004, as part of a $125 million expansion, the Company opened approximately 300 new hotel rooms and 25,500 square feet of new meeting and convention space at Green Valley Ranch. Based on the projected results for the first quarter of 2005, the annualized return on investment for the entire facility is approaching 25%. The expanded hotel and convention space has allowed Green Valley Ranch to host larger convention groups, which enables it to fill rooms during mid-week periods at premium rates. As a result, the average daily room rate at Green Valley Ranch for the first quarter to date was $183 with an occupancy rate of 88% versus an average daily rate of $161 and an occupancy rate of 94% for the first quarter of 2004. "We are pleased with the initial results from the expansion of Green Valley Ranch. However, based on the quality of the room product, the quality of the convention facility and the strength of the market, we believe there is still ample opportunity to grow both the occupancy and the room rate," said Lorenzo Fertitta, vice chairman and president.

Accelerated Expansion of Red Rock Resort Spa and Casino

Based on the continued success of Green Valley Ranch and the favorable supply-demand dynamics in the Las Vegas local's market, the Company now plans to accelerate its construction of the Phase II expansion of Red Rock. Construction on the expansion is expected to begin in late 2005 and to be completed by the end of 2006. The project, as expanded, will now include over 2,800 slot machines, approximately 850 hotel rooms, 94,000 square feet of meeting and convention space, a 35,000 square-foot spa, nine full service restaurants, 16-screen movie theater complex, a night club and private pool club to be operated by Midnight Oil Company (the operator of the "Whiskey" bars and clubs at Green Valley Ranch and in New York and Los Angeles), both indoor and outdoor entertainment venues and parking for almost 5,500 vehicles.

"The continued exceptional operating results of our properties in Las Vegas and our analysis of the future prospects in this market strongly influenced our decision to accelerate the timing of the Phase II expansion at Red Rock," said Fertitta. "As an example, Green Valley Ranch is on a run rate to exceed $100 million of EBITDA for 2005. These outstanding results combined with the favorable supply-demand dynamics in the Las Vegas local's market and the quality of the product we are building at Red Rock gives us confidence to begin the Phase II expansion of Red Rock," stated Fertitta. Based on increased amenities, an upgrade in the quality of the finishes throughout the project, general increases in construction costs and the addition of the Phase II expansion, the total cost of Red Rock is now expected to be approximately $800 million. The company believes that the operating results at Red Rock will ramp up over time and that, by the third or fourth year of operation, the property will produce in excess of $120 million of EBITDA.

Phase I of Red Rock is expected to open at the end of the first quarter of 2006. The Company's EBITDA guidance for the first full year of operations is now $65 million to $75 million, which does not include any contribution from the Phase II expansion.

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 Casinos Raises Guidance 15 Mar 2005 LAS VEGAS -- (PRESS RELEASE) -- Station Casinos, Inc. (NYSE:STN) today raised its guidance for the first quarter ending March 31, 2005 and announced an acceleration of the Phase II expansion of Red Rock Resort Spa and Casino ("Red Rock"). First Quarter Guidance Based on the strength of the Las Vegas economy and strong same store revenues, the Company now believes that, prior to development and preopening expenses and certain non-recurring items, EBITDA (1) and adjusted earnings per share ("EPS") (2) for the first quarter of 2005 will exceed its previously issued guidance of $107 million to $113 million and $0.56 to $0.62, respectively. The Company now believes that EBITDA for the quarter will be between $117 million and $119 million and EPS will be between $0.66 and $0.68. The increase is due to higher than anticipated same store revenues driving higher than anticipated EBITDA margins at our Major Las Vegas Operations (3). While the Company's original guidance provided for 9% to 13% same store revenue growth at the Major Las Vegas Operations (excluding Green Valley Ranch) in the 2005 first quarter, the Company now believes that same store revenue growth will be near the top end of this range. "Our strategic decision several years ago to focus on the locals market in Las Vegas continues to drive shareholder value through our exceptional operating results and return on invested capital," said Glenn Christenson, executive vice president and chief financial officer. In addition, the Company anticipates that Green Valley Ranch will generate $26 million to $27 million of EBITDA in the first quarter of 2005 compared to $17.7 million in the first quarter of 2004. The Company also anticipates that Green Valley Ranch's revenues for the first quarter will increase by 39% to 43% over the prior year first quarter. In December 2004, as part of a $125 million expansion, the Company opened approximately 300 new hotel rooms and 25,500 square feet of new meeting and convention space at Green Valley Ranch. Based on the projected results for the first quarter of 2005, the annualized return on investment for the entire facility is approaching 25%. The expanded hotel and convention space has allowed Green Valley Ranch to host larger convention groups, which enables it to fill rooms during mid-week periods at premium rates. As a result, the average daily room rate at Green Valley Ranch for the first quarter to date was $183 with an occupancy rate of 88% versus an average daily rate of $161 and an occupancy rate of 94% for the first quarter of 2004. "We are pleased with the initial results from the expansion of Green Valley Ranch. However, based on the quality of the room product, the quality of the convention facility and the strength of the market, we believe there is still ample opportunity to grow both the occupancy and the room rate," said Lorenzo Fertitta, vice chairman and president. Accelerated Expansion of Red Rock Resort Spa and Casino Based on the continued success of Green Valley Ranch and the favorable supply-demand dynamics in the Las Vegas local's market, the Company now plans to accelerate its construction of the Phase II expansion of Red Rock. Construction on the expansion is expected to begin in late 2005 and to be completed by the end of 2006. The project, as expanded, will now include over 2,800 slot machines, approximately 850 hotel rooms, 94,000 square feet of meeting and convention space, a 35,000 square-foot spa, nine full service restaurants, 16-screen movie theater complex, a night club and private pool club to be operated by Midnight Oil Company (the operator of the "Whiskey" bars and clubs at Green Valley Ranch and in New York and Los Angeles), both indoor and outdoor entertainment venues and parking for almost 5,500 vehicles. "The continued exceptional operating results of our properties in Las Vegas and our analysis of the future prospects in this market strongly influenced our decision to accelerate the timing of the Phase II expansion at Red Rock," said Fertitta. "As an example, Green Valley Ranch is on a run rate to exceed $100 million of EBITDA for 2005. These outstanding results combined with the favorable supply-demand dynamics in the Las Vegas local's market and the quality of the product we are building at Red Rock gives us confidence to begin the Phase II expansion of Red Rock," stated Fertitta. Based on increased amenities, an upgrade in the quality of the finishes throughout the project, general increases in construction costs and the addition of the Phase II expansion, the total cost of Red Rock is now expected to be approximately $800 million. The company believes that the operating results at Red Rock will ramp up over time and that, by the third or fourth year of operation, the property will produce in excess of $120 million of EBITDA. Phase I of Red Rock is expected to open at the end of the first quarter of 2006. The Company's EBITDA guidance for the first full year of operations is now $65 million to $75 million, which does not include any contribution from the Phase II expansion.