Las Vegas Sun

November 24, 2014

Currently: 42° — Complete forecast | Log in | Create an account

Station Casinos reports 2Q fall in revenue

Station Casinos today reported worsening performance on the heels of declines reported by other casino operators in recent weeks, saying second quarter revenue fell 7 percent and earnings before interest, taxes, depreciation and amortization fell 11 percent.

Profit rose 23 percent on an accounting quirk having to do with the value of investment derivatives that have no bearing on performance or money earned by Station, which went private in a management-led buyout last year.

Also today, Station released restated earnings for 2007 and the first quarter of this year reflecting a new way of accounting for derivatives known as interest rate swaps. Gaming companies typically don’t report these swaps, which are used to hedge interest payments on loans with floating rates, on their income statement because they have no actual value.

Earnings before interest, taxes, depreciation and amortization -- a widely-used measure of casino profit -- fell 11 percent in the second quarter compared with a year ago at the company’s major casinos except for Green Valley Ranch, where similarly calculated earnings fell 22 percent. Green Valley Ranch is half owned by the Greenspun Corp., which owns the Las Vegas Sun.

Revenue in each major department -- casino, food and beverage and rooms -- fell in the second quarter from last year.

Join the Discussion:

Check this out for a full explanation of our conversion to the LiveFyre commenting system and instructions on how to sign up for an account.

Full comments policy

Previous Discussion: comments so far…

Comments are moderated by Las Vegas Sun editors. Our goal is not to limit the discussion, but rather to elevate it. Comments should be relevant and contain no abusive language. Comments that are off-topic, vulgar, profane or include personal attacks will be removed. Full comments policy. Additionally, we now display comments from trusted commenters by default. Those wishing to become a trusted commenter need to verify their identity or sign in with Facebook Connect to tie their Facebook account to their Las Vegas Sun account. For more on this change, read our story about how it works and why we did it.

Only trusted comments are displayed on this page. Untrusted comments have expired from this story.

No trusted comments have been posted.