Station Casinos reports increased profits, revenue

Station Casinos LLC, which emerged as the new company in June to replace Station Casinos Inc. after almost two years of bankruptcy, on Monday reported improved revenue and profit from operations in the second quarter.

The gaming company reported operating income of $30.8 million compared with $20.4 million for the same period a year earlier. Net revenues increased 8.5 percent, to $298.8 million, compared with $275.3 million in the second quarter of 2010.

For the first six months of 2011, net revenues increased 4.1 percent, to $592.3 million, compared with $569.1 million last year.

Casino revenue was up 8.2 percent to $212.2 million, from $196.1 million. The increase was due primarily to a 7.4 percent increase in slot revenue and a 17.7 percent increase in table game revenue.

Food and beverage revenues increased to $58.3 million in the second quarter from $51.1 million in the same period last year. The company attributed the revenue increases to its “We Love Locals” marketing campaign. Station Casinos also experienced higher occupancy rates at its 17 properties.

At the company’s hotels, occupancy of 88 percent improved from 81 percent from the same period last year. The average daily room rate held steady at $71, while revenue per available room increased modestly, from $58 to $62, in the second quarter.

In its quarterly earnings report, the company said its debt load had been reduced to $2.2 billion as of June 30, compared with $6.7 billion owed before the restructuring. With operating leases and other long-term obligations included, the company’s total debt is $3.2 billion.

The new Station Casinos has $3.275 billion in assets. As of June 30, the company had $98.7 million in cash and cash equivalents.

Station Casinos earned $3.99 billion in net income in the second quarter, which includes $3.9 billion in restructuring adjustments. That compares with a loss of $76.5 million in the second quarter of 2010.

The company exited bankruptcy on June 17 owning 17 properties, including Green Valley Ranch, Red Rock Resort and Palace Station, with about 13,000 employees. Station Casinos now only manages Aliante Station after it passed the property to a group of lenders, including TPG Capital and Apollo Management LLC.

Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893.

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