Print
E-mail
Share
digg
Newsvine
Facebook
Stumble
Technorati
reddit
Fark
twitterStation expects extension of restructuring talks
Company reports gross revenue down more than $70 million compared to same period year ago
Published Thursday, May 14, 2009 | 7:55 a.m.
Updated Thursday, May 14, 2009 | 5:39 p.m.
Sun Coverage
Station Casinos Inc. reported lower revenue Thursday and said it expects to reach agreement with key bondholders to continue restructuring discussions past Friday's deadline of an existing forbearance agreement.
As the recession continued to reduce activity at the company's casinos and hotels, the Las Vegas-based locals gaming operator today reported first quarter gross revenue of $307.6 million vs. $378.8 million in the same quarter of 2008.
A measure of profitability, operating income and earnings from joint ventures fell from $68.5 million in the 2008 quarter to $29.4 million in the 2009 quarter.
Overall, the company reported a first quarter 2009 loss of $33.7 million vs. a loss in the year-ago quarter of $70.8 million. Those numbers include changes in the value of financial derivatives and expenses or benefits from income tax provisions.
Because of reductions in cash flow tied to the recession, the company is having difficulty serving its debt load of $5.74 billion and is negotiating with key bondholders regarding a proposed prepackaged bankruptcy filing in which bondholders would make concessions and Station's owners, the Fertitta family and Colony Capital, would invest another $244 million in the company and remain in control of Station.
Under forbearance agreements in which key bondholders agreed not to take action against Station, the company in recent months has not made interest payments on some of its debt during these negotiations. The latest forbearance agreement expires Friday and will likely be extended.
"We expect to receive a forbearance extension from our lenders tomorrow and are awaiting the paperwork," Station spokeswoman Lori Nelson said Thursday.
In a regulatory filing today, Station said cash flows during the quarter ended March 31 were affected by a decrease of $78 million in cash paid for interest vs. the 2008 period due to the decision not to make scheduled interest payments on certain notes.
The company has also incurred $17.9 million in fees from legal and financial advisory firms for the lenders with whom it is in debt restructuring talks.
Other highlights from today's quarterly financial report:
-- Net revenue in the quarter of $282.7 million was down 20 percent vs. the 2007 quarter.
-- Adjusted EBITDA -- earnings before interest, taxes, depreciation and amortization, another profitability measure -- was $98 million, down 28 percent.
-- The company incurred $5.3 million in write-downs and other charges, of which $4.8 million related to a loss related to a disposition of a land parcel, $100,000 was for a loss on asset disposals and $200,000 related to severance expense as the company continued to reduce costs by reducing staffing levels.
-- The company also reported $600,000 in costs to develop new gaming opportunities, $2.8 million of expense related to equity-based awards, $1.7 million of preopening expenses and $4 million in legal fees related to the proposed debt restructuring and other non-recurring costs.
-- Station also bought $48 million in principal amount of its outstanding senior subordinated notes during the first quarter, resulting in a $40.3 million gain on early retirement of debt.
-- At Green Valley Ranch Resort, a partnership with Las Vegas Sun owner the Greenspun family, Station said its quarterly earnings were $6.7 million, which represents a combination of its management fee and 50 percent of the resort's operating income. In the first quarter, Green Valley Ranch generated adjusted EBITDA before management fees of $17.4 million, down 31 percent from the 2008 quarter. Green Valley Ranch reported net income of $1.3 million for the first quarter vs. net income of $1.4 million in the same period in the prior year.
-- Net revenue from the company's major Las Vegas-area casinos, excluding Green Valley Ranch, fell 19 percent to $258.8 million while adjusted EBITDA declined 24 percent to $87.1 million. The net loss for these properties was $5.7 million vs. a profit of $6.7 million in the year-ago quarter.
Station's properties are Red Rock Casino Resort Spa, Palace Station Hotel & Casino, Boulder Station Hotel & Casino, Santa Fe Station Hotel & Casino, Wildfire Rancho and Wild Wild West Gambling Hall & Hotel in Las Vegas; Texas Station Gambling Hall & Hotel and Fiesta Rancho Casino Hotel in North Las Vegas; and Sunset Station Hotel & Casino, Fiesta Henderson Casino Hotel, Wildfire Boulder, Gold Rush Casino and Lake Mead Casino in Henderson.
Station also owns a 50 percent interest in Green Valley Ranch Station Casino, Barley's Casino & Brewing Company, The Greens and Wildfire Lanes in Henderson; a 50 percent interest in Aliante Station Casino + Hotel in North Las Vegas; and a 6.7 percent interest in the joint venture that owns the Palms Casino Resort in Las Vegas. Station manages Thunder Valley Casino near Sacramento on behalf of the United Auburn Indian Community.
Discussion: 10 comments so far…
Post a comment
- Most Read
- Discussed
- Most E-mailed
- Police: 3 arrested in officer’s death have gang ties
- Corrections officer with Metro killed in U.S. 95 crash
- System fails to catch contractor’s family tie with county
- Fontainebleau contractors say sales process is flawed
- Where to watch UFC 106
- UNLV and Southern Illinois will be guarded tonight
- Findlay guard Joseph scores 33, talks about UNLV
- Bishop Gorman takes Sunset Region title in win over Cimarron
- Fighters make weight, Dana White talks Rampage/Rashad
- Reid clears major health care hurdle, daunting weeks ahead
Blogs
The Kats Report
For props, Lewis Black needs only his manic delivery and torrid material (4 Comments)
Elsewhere
Sands China raises $2.5 billion in Hong Kong IPO (1 Comment)
Marquardt v. Sonnen scheduled for UFC 109
Bloggity, Bloggity, Bloggity
Will a fourth consecutive title by Jimmie Johnson be good or bad for NASCAR? (4 Comments)
Top Chef: Las Vegas
The Jet Stream: And then there were four
Top Chef Episode 12: On keeping it simple
Miech Again
Chilly start for Chace, but Stanback says he'll warm up (2 Comments)
- Live chat
- Tuesday, noon PST
- Chat with Krista Creelman
- Problem Gambling Center executive director Krista Creelman will answer questions about gambling addiction from Las Vegas Sun readers from noon to 1 p.m. Tuesday, Nov. ... Submit question
Calendar »
- 22 Sun
- 23 Mon
- 24 Tue
- 25 Wed
- 26 Thu
-
The Four Tops at The Orleans Showroom
Orleans Hotel-Casino
-
The Chase at Downtown Cocktail Room
Downtown Cocktail Room | 10 p.m. to 11:59 p.m.
-
Lady Gaga album release party at Revolution Lounge
Beatles Revolution Lounge | 10 p.m. to 11:59 p.m.
-
Food drive at Christian Audigier
Christian Audigier The Nightclub | 10 p.m. to 11:59 p.m.
-
Above & Beyond at Moon
Moon Nightclub | 10 p.m. to 11:59 p.m.
The Sun
Locally owned and independent for more than 50 years.
Maybe now they will stop following their customers around the casino, spying on them.
I live about 5 minutes from GRV and have all but stopped "gaming" there for about 6 months now. I probably made 50 trips there and maybe walked out ahead 1 time with like 75 bucks. I say good riddance to bad rubbish. That Stations has too many middle managers pulling 6 figure salaries that do nothing.
So after swearing off all casinos I'm now doing the same for video poker bars. United coin recently made adjustments to their pay tables which in effect makes it not worth to play. I've never felt better. It used to be fun in this town but now its just how much money they can screw the small guy out of.
YES locals come to our buffets we feature the worst buffets in town. Yes this is the last stop for food before it goes to the pig farm. Or maybe it stopped there first. Yes locals this is your two for one slop stop! OINK ! OINK !
Well, there losses surely is not coming from payouts on machines. I've already had it set in my mind to never play there again.Nothing but pure rip off. Maybe if these casinos realize that they need customers,and your surely not going to pull them in without giving some realistic cash back once in a while. Its not the customers fault, that these guys are in debt up to their eyebrows.
Go get em Boyd!
You can fool all the people some time and some people all the time but u can't fool all the people all the time!THERE ARE OTHER CASINOS WITH LOOSER SLOTS and better payouts(Southpoint, M )
Go get em Boyd?? They lose even more than Stations? Anyone who says Boyd doesnt know anything they are talking about.
Went to M the other day. EMPTY! Maybe 250 people in all. The honeymoon is over for M. Southpoint never went on a honeymoon.
Stations has always been the best and always will be the best. You think they get the loyal following they do and the traffic because everyone thinks so poorly about them? But there will always be bad eggs. Only 7 more of you and we have an even dozen.
Any bonehead business could make money if they aren't making their mortgage payments!
M is eating GV's lunch. But until they finish the never ending work on St. Rose Pkwy, M will be affected big time. Maybe the Fertitta's are out there with Stop signs. But pretty soon, after BK, they'll appreciate the work.
have stayed at sunset the last 20 or so trips to vegas, the connections have turned nice properties into junk. looking elsewhere on my next trip. they have room temperatures so regulated, the only way to get cool in your room is to take a shower, because they sure have alot of cold water. feel sorry for employees