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Wednesday, March 31, 2010 | 2:26 p.m.
Sun archives
- Station Casinos reorganization plan: Sell several properties (2-25-2010)
- Station Casinos reaches deal with key lenders, hopes to emerge from bankruptcy (2-25-2010)
- Bankruptcy judge urges Station Casinos, creditors to negotiate (1-25-2010)
- Fertittas seek to block creditors’ lawsuit in Station bankruptcy case (1-12-2010)
- Station Casinos bondholders want permission to sue (12-29-2009)
- Culinary Union sides with Station Casino’s creditors (11-23-2009)
- Culinary Union statement critical of Station Casinos (11-19-2009)
- Creditors want to expand probe of Station Casinos deal (11-19-2009)
Station Casinos Inc. of Las Vegas today disclosed that its revenue fell on a year-over-year basis in the fourth quarter as the recession reduced spending at its hotels and casinos.
The company, which is operating in bankruptcy, reported fourth quarter revenue of $256.5 million, up slightly from the third quarter but down from $289.8 million in 2008’s fourth quarter.
Adjusted EBITDA – a profitability measure meaning earnings before interest, taxes, depreciation and amortization – was $71 million, down 27.3 percent from the fourth quarter of 2008.
Both fourth quarters included huge quarterly losses – on paper – because of accounting charges.
In 2009’s fourth quarter, the company lost $1.125 billion mainly because of impairment losses totaling $1.28 billion. There were also $5.2 million in net costs related to the bankruptcy reorganization that has been under way since July.
The impairment losses – accounting charges to reflect the declining value of assets – include $181.8 million for goodwill, $255.3 million for other intangible assets, $617.4 million for land held for development, $179.4 for property and equipment and $43 million for other assets.
In 2008’s fourth quarter, Station lost $3.2 billion. That included asset impairments, write-downs and other charges of $3.4 billion.
Station said its Green Valley Ranch joint venture with an affiliate of the Greenspun family, owner of the Las Vegas Sun, generated fourth quarter earnings for Station of $2.1 million, which included Station's management fee and 50 percent of the property's operating income.
For the fourth quarter, Green Valley Ranch's adjusted EBITDA before management fees was $8.8 million, down 44.2 percent compared to the 2008 fourth quarter.
Green Valley Ranch had a net loss of $2.6 million for the fourth quarter vs. a net loss of $23.2 million in the same period in 2008, Station said.
Station's subsidiary that manages Green Valley Ranch filed for bankruptcy in the first quarter and has warned the property itself may need to restructure because it's near a default on its debt. The Greenspun affiliate is seeking dismissal of that bankruptcy case, claiming Green Valley Ranch has been mismanaged by Station – charges Station denies and attributes to a fired former manager.
For all of 2009, Station reported net revenue of $1.062 billion, down from $1.298 billion in 2008.
The company, with interests in 18 Las Vegas-area gaming properties, posted an annual loss of $1.679 billion vs. $3.268 billion lost in 2008.
"The decrease in net revenue was due primarily to a continuing overall decrease in gaming revenue across all properties as a result of weakening Las Vegas and U.S. economies. Declining real estate values, the credit crisis, increased unemployment and a decrease in consumer confidence levels have all precipitated an economic slowdown, which has negatively impacted our operations during 2009 and 2008," Station said today in its annual report.
Casino revenue for 2009 fell nearly 17 percent to $764.6 million while food and beverage revenue fell 17 percent to $190 million and room revenue fell 22.2 percent to $82.3 million.
The hotel occupancy rate of 83 percent in 2009 was down 5 percentage points from 2008 while the average daily room rate fell from $85 to $67.
Station has about 4,250 hotel rooms. Its largest hotels are at Palace Station at Sahara Avenue and Interstate 15 (1,000 rooms) and at Red Rock Resort in Summerlin (815 rooms).
Station reported the value of its assets as $4.276 billion at the end of 2009, down from $5.831 billion at the end of 2008.
Debt and other liabilities at year end totaled $6.6 billion, up from $6.5 billion at the end of 2008
Station's bankruptcy judge has yet to rule on the company's reorganization plan in which Station owners the Fertitta family and Colony Capital and certain lenders would take over five of Station's 18 properties and the others would be sold – with the Fertittas potentially bidding for the 13 on the for-sale list along with several land parcels.
Amazing! these places are going to end up not being worth their paint jobs. Boyd is crazy to want to aquire any of these properties..
Yeh, the Fertittas want to bid on the 13 left over casinos, so they can get them for pennies on the dollar, ala Carl Icahn. This town is starting to rot like a dead dog at the side of the road. BK is being used to ruin this town.
Guess the guy on radio who says to stay home and eat beans and rice is having an impact. My neighbor use to gamble, have a buffet etc., now he won't go out because of this guy who broadcasts out of TN who says gambling is "stupid."
With all the noise about Obama's comments about "blowing money in Vegas," you would business and civic leaders would take a stand about: "NO SPEND RADIO"
Obama may get his way: Nevada regulators are analyzing Macau casino activity. Good way to end the over supply issue - shut down some hotels (Palazzo and Venetian).
Sooner or later some of the older LV properties that ladled on too much debt are going to wind up closing their doors. In the long run, this could be good, indeed necessary, to restore a balance between supply and demand.
True, more people will lose jobs, but one of the hallmarks of the evolutionary free market is "creative destruction". It isn't pretty, but it is required.
Bring back the Mob. They never had any issues like this.
We have the mob. They came from Chicago.
No neiman1, they came from New York and Boston.
Loveman at Harrah's-western Massachusetts.
Weinburg at Wynn-Utica, New York.
Murren at MGM-New York City.
Adelson at Venetian-Dorchester, Massachusetts.
See the drift, neiman? It ain't the mob. It's the connivers and wheeler dealers from the East Coast that have left us high and dry and out of work. Greed greed and more greed.
Who goes out first? My bet is Harrah's.
The Fertittas are the biggest thieves around. They are being allowed to get their best properties for pennies on the dollar? Why doesn't the bankruptcy judge require them to purchase the losers like( Texas Station. Fiestas , Alliante) at competitive prices. Wasn't the Fertittas once named as the top business people in Las Vegas? I don't believe their financial statements. Who is their auditor(ARTHUR ANDERSON) For those uninformed Anderson was the auditor for Enron!
I'll bet the Fertittas will show some huge profits once they buy the properties in bankruptcy court for pennies on the dollar. In the mean time they are just crying broke. They're saying: Bo ho, our Maybachs and other exotic cars at the corporate center depreciated. And we just refurbished one of the GVR towers last year.
Who goes to these places? If it is locals, good luck with that! I thought going to LV and staying @ the LV Hilton was too far off the beaten path.
"Boyd is crazy to want to acquire any of these properties..", actually , no, they're not crazy, they know what local people want to spend their money on, Stations are clueless, Boyd would be the ones that can turn it around, buy casinos cheap and put in machines, tables, restaurants, venues that locals like. I go to both of their properties and coast casino always have more patrons than stations.
Gambling is STUPID. It's a waste of money. The freakin casino's did not get big by have winners at every machne or table.
The guy on the radio means crap, people are not spending because they are worried abou their last few dollars.
Actually the Fertitta's were brilliant here. They cashed out at the tippy top of the market, and are sitting on a mountain of cash. They'll wait till the properties hit minimum market value, and buy the back, as has been said before at pennies on the dollar, and likely with all the debt washed out by the BK.
Neiman has once again proven he knows nothing about nothing. What is new?
vegasfun01 Obama has never said shut down casinos. He did advocate people think for once and save some of thier money for legitimate expenses rather than put it all in a slot machine. Do you understand ?
Las Vegas was built on disposable income.
This is a justice of irony & comedy.
Now the only thing that's disposable in Las Vegas
is...us.
Chazbean - It's Andersen and they were aquitted of wrong doing by the US court system. Why don't you get your facts straight before you post from the ditch your digging. And you don't believe the financial statements because your fourth grade brain doesn't understand them.
Can someone answer my question?
When the article says "Station reported net revenue of $1.062 billion" does that only count 50% of the shared properties like Green Vally, Red Rock, and Aliante?
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If it means 100% of those casinos that is pretty pathetic return on 18 properties. Even if it does mean 50% that is still a fairly low return on places Boulder Strip, Texas Station, and Santa Fe Station.
bjyorker ir right, no extra money=no gambling dollars. how's that rich thing doin for ya vegas. teabaggers mad at health care, not corporate greed, not all our jobs shipped overseas.
"We have the mob. They came from Chicago"
Sorry, nieman1, you're wrong. The New York mob started Vegas and as time went on - both the Milwukee, Chicago and KC mobs got involved but not to the extent the east cost mob was involved. (Read the book "Casino".) But the East Coast mob did start the whole thing and kept a major stronghold in it for a very long time.
To DDWEST I do apologize for the spelling of Andersen. If you know anything about Financial Statements the auditors get paid by the client and if they don't sign off on what the client wants they have 2 options, Quit or sign off. Now having said this Andersen has to be held accountable for the bankruptcy of Enron.
By BigStack...yes, they are brilliant. Screw the crditors. Screw the employees and gouge the players. Reap all the money for themselves and themselves only. How many people will want to do business with them in the future? Knowing how Stations ripped off their creditors, how willing would banks be to loan them a dime in the future? I wouldn't take a dump in a Stations property. Screw the Fertittas!
The creditors should get the joints, then run or sell them off.
With all the Illinois bashing, we'll keep our uranium barrels here and their jobs too !