Monday, Nov. 16, 2009 | 7:28 a.m.
Las Vegas locals gaming leader Station Casinos Inc. today disclosed it incurred $370.7 million in costs related to its bankruptcy reorganization, driving a quarterly loss of $455.4 million.
The third quarter 2009 loss compares to $23.4 million lost in the third quarter of 2008.
Net revenue of $255.7 million was down from $317 million as high unemployment in the Las Vegas area, now 13.9 percent, reduced spending at Station's 18 Las Vegas-area properties.
Factoring out the reorganization costs, Station would have lost $84.7 million.
On a sequential basis, Station's decline in net revenue of 19.3 percent was an improvement from the second quarter, when net revenue fell 21.2 percent.
Station said that during 2009's third quarter, casino revenue fell 18.6 percent as customer visits and spend per visitor fell. Food and beverage revenue was down 19.6 percent.
At the company's hotels, room revenue was down 21 percent as occupancy of 84 percent was down from 90 percent and the average daily room rate of $61 was down from $77.
In the Chapter 11 bankruptcy case filed July 28, cash payments for the nine months ended Sept. 30 for professional fees and retainers and other reorganization items totaled $50.8 million.
Other reorganization costs included $319 million for losses on interest rate swaps and write offs related to changes in the values of expected debt discounts and debt issuance costs.
Related accounting adjustments in the quarter lifted Station's total debt and liabilities to $6.818 billion vs. $6.49 billion at the end of the second quarter.