MobileRJ | RSS TwitterTwitter FacebookFacebook E-mail Alerts
Home manage Las Vegas Review-Journal
  Jobs Cars Homes Shopping Travel Weddings Golf Best of Las Vegas Photo   Search:

RECENT EDITIONS
Wed Thu Fri Sat Sun Mon Tue

Business
Nov. 17, 2009
Copyright © Las Vegas Review-Journal

GAMING COMPANY EARNINGS: Station drops $455.4 million

Most of quarterly loss linked to reorganization

By ARNOLD M. KNIGHTLY
LAS VEGAS REVIEW-JOURNAL

Bankrupt Station Casinos' financial losses continue to mount.

The locals gaming company posted a $455.4 million loss in the third quarter, a filing Monday with the Securities and Exchange Commission showed.

Most Popular Stories
  • REAL ESTATE: Housing analyst predicts increase in sales, median price in the coming year
  • REAL ESTATE: Housing analyst predicts increase in sales, median price in the coming year
  • SOUTHERN NEVADA ECONOMY: Survey says recession's worst has passed for Las Vegas
  • Blue Heron remains aloft with custom features
  • Rental housing prices down 8.2 percent in Las Vegas
  • Rental housing prices down 8.2 percent in Las Vegas
  • UFC investment won't be used to help bail out Station Casinos, owners say
  • UFC investment won't be used to help bail out Station Casinos, owners say
  • Penn National maintains interest in Strip property
  • Penn National maintains interest in Strip property
  • INSIDE GAMING: 'Total nonsense' makes a lot of sense
  • Harrah's gets preliminary approval to acquire Planet Hollywood
  • Harrah's gets preliminary approval to acquire Planet Hollywood
  • Upbeat start for furniture mart
  • HOUSING CRISIS: Extra staff to fight foreclosures
  • HOUSING CRISIS: Extra staff to fight foreclosures




    • The company said its huge third-quarter net loss was tied to a debt write-off and other charges related to its bankruptcy filing.

    The loss for the quarter ended Sept. 30 was an increase from the $23.4 million loss posted at the same time last year.

    Nearly $370.7 million of the loss was due to costs tied to the company's reorganization efforts, including a $225 million debt write-off and $17.9 million in professional fees related to the bankruptcy.

    The company's net loss for the first nine months of the year is $544.4 million, compared with a $75.7 million loss in the first nine months of 2008.

    Station Casinos declined further comment Monday.

    Station Casinos' five joint venture operations with the Greenspun Corp. also continued to suffer during the quarter, according to the filing.

    The joint venture's newest property, Aliante Station in North Las Vegas, lost $3.7 million in the quarter, driving the joint venture's earnings to a net operating loss of $3.6 million in the quarter. That's a sharp swing from the $2.3 million profit in last year's third quarter.

    The troubled $662 million Aliante Station, which opened Nov. 11, 2008, had a nine-month earnings loss of $9.7 million.

    The earnings release comes days before another bankruptcy hearing in Reno. Judge Gregg Zive Is scheduled to hear arguments Friday on various motions, including Boyd Gaming Corp.'s request that a third-party examiner be appointed to review Station Casinos' financial records.

    Boyd's request is in response to a motion by Station Casinos seeking additional time to file its own reorganization plan. Station Casinos is seeking a four-month extension from the Nov. 25 deadline to file a proposal.

    Station Casinos filed for Chapter 11 bankruptcy in July after failing to reach agreement with its creditors on a plan to restructure its long-term debt, which is now $5.9 billion.

    A group of small lenders representing nearly 5 percent of the debt has asked Zive to appoint an examiner to look into several aspects of the bankruptcy, including Station Casinos' November 2007 buyout, which loaded the company with debt.

    The lenders also believe Station Casinos' board may have had conflicts of interest when it rejected Boyd's offer to buy some of its competitor's operating assets for $950 million.

    Other earnings information from the filing showed the gaming company's quarterly revenues dropped 19.3 percent last year, to $255.7 million from $317 million. Nine-month revenues were down 20.1 percent to $805.6 million from $1.01 billion last year.

    Adjusted cash flow dropped 43.5 percent to $61.4 million in the quarter, and dropped 36.1 percent to $238.6 million for the first nine months of the year.

    Hotel occupancy dropped 6 percent to 84 percent in the quarter and 5 percent to 85 percent for the year.

    Average daily room rates dropped to $61 from $77 in the quarter.

    Station Casinos owns 13 properties, including Red Rock Resort, Palace Station, Boulder Station, Texas Station, Sunset Station, Santa Fe Station, the Fiestas and Wildfire casinos. It also manages an American Indian casino in California.

    In addition to Aliante Station, the Station Casinos-Greenspun Corp. joint venture owns Green Valley Resort and three smaller casinos.

    Green Valley Resort had an operating loss of $855,000 in the first nine months of the year, a swing from the $17.5 million net earnings realized for the same period last year. Its revenues declined 27.8 percent in the quarter to $42.6 million. Property cash flow fell 56.4 percent to $8.5 million.

    Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or 702-477-3893.

    Newsvine Digg Fark Technorati reddit StumbleUpon del.icio.us Slashdot Propeller Mixx Furl Twitter MySpace Facebook Google Bookmarks Yahoo! Bookmarks Windows Live Favorites Ask MyStuff myAOL Favorites

    Leave Your Comment 15 Reader Comments
    Terms & Conditions
    The following comments are provided by readers and are the sole responsiblity of the authors. The reviewjournal.com does not review comments before publication nor guarantee their accuracy. By publishing a comment here you agree to abide by the comment policy. If you see a comment that violates the policy, please notify the web editor.

    Some comments may not display immediately due to an automatic filter. These comments will be reviewed within 48 hours. Please do not submit a comment more than once.
    Current Word Count:

    Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background.

    Bring Back The Mob wrote on November 18, 2009 12:29 PM: My spouse works at Stations and they are really sweating front-line employees for anything and everything, looking to cut-cut-cut anywhere they can. Upper mgt. seems to be absolutely clueless on how to operate a casino and how to take care of both employees and guests. Hey Stations, take care of your employees and the profits will follow. This should appeal to your "greed" side, right?


    SEE YA wrote on November 18, 2009 11:22 AM: Guess you shouldn't gone private LOL


    casinocon wrote on November 17, 2009 08:26 PM: Screw Station Casinos -- they are morons, for not keeping their locals coming back. Sure, we are hurting financially, but Station does nothing but make the local economy WORSE! They could loosen the slots, and let us hang out a little on the weekend, but no . . . they keep tightening the screws. Screw them. I will be happy to see them sold off -- BTW Coast Casino is no better . . . is there anyone out there who understands how to treat the gaming public?


    Tom, Burbank wrote on November 17, 2009 06:16 PM: What's "gamming"?


    Lyle wrote on November 17, 2009 04:52 PM: I have been coming to LV for about 25 years, and at first stayed on the strip. When they started to build their larger casinos, they forgot about their customers. I then started to stay at Sunset and have always been treated as a valued customer, and will continue to consider them a very good organization. If the strip companies would treat people like they use to in the late 80's and early 90's they would have more loyal customers.


    Bobby wrote on November 17, 2009 01:53 PM:
    America

    Home of BANKRUPT corporations that somehow have the money to BRIBE our public officials into making ILLEGAL laws to help them.

    They have the money to BLOCK on-line gambling through BRIBES, but can't pay their loans back.

    Great stuff.

    Could not have ever believed this was possible in a FREE COUNTRY!


    ladyshylo wrote on November 17, 2009 01:51 PM: I was told that the Fertittas sold out 2 to 3 years ago, I worked for them, they aren't interested in gaming, just the money!!!


    Bobby wrote on November 17, 2009 01:51 PM:
    I bet you they still had the money to BRIBE public officials to help them stay afloat.

    Casinos who can't even pay back their loans somehow have the money for these BRIBES to get laws passed to outlaw gambling on-line because it might take away customers.

    America

    Land of buying laws EVEN WHEN YOU DON'T HAVE IT.


    Bobby wrote on November 17, 2009 01:51 PM:

    I bet you they still had the money to BRIBE public officials to help them stay afloat.



    Casinos who can't even pay back their loans somehow have the money for these BRIBES to get laws passed to outlaw gambling on-line because it might take away customers.



    America



    Land of buying laws EVEN WHEN YOU DON'T HAVE IT.


    Ken wrote on November 17, 2009 11:09 AM: True, Maddie. Where is Harry? When that spineless wonder at MGM needed help he reminded Harry of their political donations and Harry responded and did a commercial.

    Why can't Harry help the Fertittas? Oh please save us Harry, from ourselves.


    Read All Comments