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StumbleStation Casinos reports 2Q fall in revenue
Monday, Aug. 11, 2008 | 5:13 p.m.
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.
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Sation Casinos have the worst paying slot and poker machines in the State along with the Rampart Casino. All claim to be casino's for'local's'. The only differense is you do not have to drive to the strip to get your money taken from you and your brains kicked in if you stay to long and play a little longer. A fair gamble for your dollar is a mith. There is no honor among thieves.
Their earning percentage may have fallen but until they actually start to LOSE money (instead of crying about MAKING LESS money)they should all shut up - use their whining time to count their blessings (which among them would be the fact that while they may have made LESS money the fact still remains that they did in fact MAKE money). Stations Casino's etal - shut up!
But Station Casinos used to be a great company! I remember when they had tons of full-pay 6-9 and other cool machines. All of them have gone in the recent years. They used to have cool deals in the coffee shop. No more!!!! I wonder how long it may take until the Optimum Play banks have vanished!
As for the Poker Rooms.....They may look cool. But how cool is a bad beat jackpot that's almost impossible to hit? Ever thought about the high drop they collect until...FINALLY....some lucky day the big payout happens?
Once again, I miss the golden days when Vegas was something special and worth visiting. All those luxury casinos do no longer look much different from the casinos in the rest of the world, meaning, the odds in Vegas are not much better than elsewhere these days. So why visiting?
Boris R, you are correct ! The keyword is USE TO BE, Stations was a great place for a long time..NOW..they have forgotten where they came from and who supported them....in the early years..as usual they fixed what wasnt broken
Some of the GM/VP of the properties could care less..about players..The Corp people..fagetaboutit !!or at least thats my opinion !!