Station Casinos’ revenues dive in fourth quarter

An economy that has cost thousands of locals their homes and jobs also punished Station Casinos last year, with the locals gaming company reporting revenues were down 10.3 percent in 2008.

Net revenues fell to $1.3 billion from $1.45 billion in 2007, the lowest total since 2005, the year before the financially struggling company opened its $975 million Red Rock Resort, a filing today with the Securities and Exchange Commission shows.

Station Casinos also reported that its fourth-quarter revenues plummeted 19 percent to $289.8 million from $357.5 million

The company blamed the economic downturn that has hit the gaming industry hard for the drop in revenues.

“The decrease in net revenues was due primarily to an overall decrease in gaming revenues across all properties as a result of weakening Las Vegas and U.S. economies,” the company said. “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 2008.”

Station Casinos did not hold a conference call to discuss its earnings and declined to comment beyond the filing.

Jacob Oberman, director of gaming research and analysis at CB Richard Ellis, said beyond the economy, Station Casinos’ properties lost customers to the Boulder Strip’s Eastside Cannery, which opened in August, and Aliante Station, the Station Casinos’ joint venture with Greenspun Corp. that opened in November.

“They leveraged their database when they opened Aliante and got players who might be Red Rock or Sante Fe or Texas players,” Oberman said. “Obviously, they would have cannibalized some trips. The Eastside Cannery opening probably had a pretty substantial impact on Boulder (Station) and Sunset (Station).”

Oberban said the locals market is expected to continue to be “ down significantly ” from last year as consumers continue to cut back on spending.

Station Casinos, which is privately held by members of the Fertitta family and Los Angeles-based real estate firm Colony Capital, said in a federal court filing in March that it will file for bankruptcy by April 15. The company said it could also seek another extension from the company’s debtors so it can continue to negotiate details of its bankruptcy proposal.

April 15 is the day a forbearance agreement with holders of the company’s $5.4 billion debt load expires. It also is five days after Station’s new deadline for bondholders to approve the company’s debt exchange offer.

The debt exchange proposal asks investors holding $2.3 billion in bonds to accept between 10 cents and 50 cents on the dollar in cash and new notes as part of a prepackaged Chapter 11 bankruptcy.

Station Casinos reached agreements in early March with its lenders to give the company more time to negotiate a restructuring plan after Boyd Gaming Corp. made an offer to buy much of the gaming company’s assets for $950 million.

The revenue numbers were in line with the unaudited results the company released in February when it unveiled its prepackaged bankruptcy proposal.

The fourth-quarter revenue drop continued a steep decline that started last year; revenue decreased 10.5 percent in the third quarter and 7.4 percent in the first nine months of the year.

The company posted a $3.3 billion loss last year, driven by a $3.34 billion noncash impairment writedown in the fourth quarter, according to the earnings report. Fourth-quarter cash flow, defined as earnings before interest, taxes, depreciation and amortization, was $97.6 million, a 26 percent decrease from the $118 million reported in 2007. Cash flow for the year fell 14.4 percent to $475.5 million from $555.3 million in 2007.

Casino revenues dropped 19.2 percent in the fourth quarter and 10.9 percent for 2008.

Room revenues decreased 6 percent last year while occupancy slipped two points to 88 percent.

The company’s staffing level decreased 7.6 percent to 13,400 from 14,500 in 2007. That number was cushioned by the opening of Aliante Station in November, which added 1,000 employees to the company’s payroll.

Contact reporter Arnold M. Knightly at or 702-477-3893.

Vegas Homeless Remembered
Las Vegas vigil remembers 179 homeless people who died over the past year in Clark County. (David Guzman/Las Vegas Review-Journal)
A look inside Tesla’s Nevada Gigafactory
Tesla's Gigafactory east of Reno produces the batteries that fuel the company's electric cars. Production has created more than 7,000 jobs, and the campus that includes one of the largest buildings in the world is expected to triple in size by the time it is completed. Tesla Vice President Chris Lister leads a tour of the facility. (Bill Dentzer/Las Vegas Review-Journal)
Garnet Interchange Ribbon Cutting
The Nevada Department of Transportation celebrated the completion of the $63 million I-15-US 93 Garnet Interchange project. The project includes a modified diverging diamond interchange and a 5-mile widening of US 93.
State Foresters Hunt for Record Trees
Urban foresters from the Nevada Division of Forestry hunt for record setting trees.
Rick Davidson directs NFR satellite feed
Rick Davidson directs the Wrangler NFR's live satellite feed from a production trailer outside the Thomas & Mack Center. (Patrick Everson)
Scott Boras, Bryce Harper's agent, speaks to media at baseball's winter meetings
Baseball agent Scott Boras updates media on the contract negotiations of his client Bryce Harper during baseball's winter meetings at Mandalay Bay in Las Vegas, Nevada, on Dec. 12, 2018. (Ron Kantowski/Las Vegas Review-Journal)
Achievement School District
The achievement district faced strong opposition from traditional schools back in its beginnings in 2016. But with schools like Nevada Rise and Nevada Prep, it's slowly and steadily growing. Amelia Pak-Harvey/Las Vegas Review-Journal
Fresno State QB on record-breaking receiver
Fresno State quarterback Marcus McMaryion talks record-setting receiver KeeSean Johnson. Video by Mark Anderson/Las Vegas Review-Journal
The annual 'Shop with a Cop' event at Target
This year’s "Shop with a Cop" event gave about 40 children the chance to shop at Target alongside a North Las Vegas Police officers. Bizuayehu Tesfaye/Las Vegas Review-Journal @Bizutesfaye
Melvin Dummar dead at 74
Melvin Dummar has died at 74. Dummar was famous for claiming to have saved Howard Hughes in a Nevada desert in 1967. Dummar claimed to have been left $156 million in Hughes’ will. The will mysteriously appeared after Hughes’ death in 1976. It was dismissed as a fake two years later. Dummar never saw a dime of the billionaire's fortune. Dummar died Saturday in Nye County.
Officer-involved shooting in Nye County
The Nye County Sheriff's Office gives information about a shooting in Pahrump on Thursday night after a man began firing shots outside of his home. (Nye County Sheriff's Office)
Law Enforcement Active Shooter Training Exercise
Multiple Las Vegas Valley law enforcement agencies held an active shooter drill at the Department of Public Safety’s Parole and Probation office on December 6, 2018. Officials set up the training exercise to include multiple active shooters, a barricaded suspect and multiple casualties. (Katelyn Newberg/ Las Vegas Review-Journal)
Public memorial service for Jerry Herbst
Archiving effort hits milestone at Clark County Museum
The Clark County Museum catalogs the final item from the bulk of Route 91 Harvest festival artifacts. (John Przybys/Las Vegas Review-Journal)
Pearl Harbor survivor Edward Hall talks about his memories of Dec. 7, 1941
U.S. Army Corps Edward Hall, a 95-year-old survivor of Pearl Harbor talks about his memories of that horrific day. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Final Route 91 Harvest festival remembrance objects catalogued at Clark County Museum
The last of the more than 17,000 items left at the makeshift memorial near the Las Vegas sign after the Oct. 1 shootings have been catalogued at the Clark County Museum in Las Vegas. The final item was a black-and-white bumper sticker bearing "#VEGASSTRONG. An additional 200 items currently on display at the museum will be catalogued when the exhibit comes down. (K.M. Cannon Las Vegas Review-Journal)
Dozier execution timeline
Scott Dozier was set to be executed July 11, 2018, at the Ely State Prison. Judge Elizabeth Gonzalez delayed the execution.
Grand Jury Indicts Constable for theft
A Clark County grand jury indicted Henderson Constable Earl Mitchell. A Las Vegas Review-Journal investigation prompted the criminal probe. The newspaper found Mitchell wrote himself thousands in checks, took out cash at ATMs and traveled on county funds. He faces four felony counts of theft and a county of public misconduct. Mitchell and his attorney could not be reached for comment.
93-year-old WWII veteran arrested during visit to VA hospital
Dr. S. Jay Hazan, 93, a World War II veteran, talks about his arrest during his visit to VA hospital on Friday, Nov. 30. (Erik Verduzco Las Vegas Review-Journal @Erik_Verduzco_
Pearl Harbor survivor struggles in her senior years
Winifred Kamen, 77, survived the attack on Pearl Harbor as an infant, works a 100 percent commission telemarketing job to make ends meet. (K.M. Cannon Las Vegas Review-Journal)
Las Vegas Metropolitan Briefing 18th street gang
Las Vegas Metropolitan briefs the media on the recent arrests made regarding the 18th street gang.
Man shot in Las Vegas traffic stop had knife, police say
Police said the man fatally shot by an officer during a traffic stop in downtown Las Vegas had a “homemade knife.” Demontry Floytra Boyd, 43, died Saturday at University Medical Center from multiple gunshot wounds after officer Paul Bruning, 48, shot him during a traffic stop. Bruning pulled Boyd over on suspicion of driving recklessly at 7:41 a.m. near Sunrise Avenue and 18th Street.
Catahoula dogs rescued from home in Moapa Valley
Catahoula dogs were brought to The Animal Foundation after being rescued from home in Moapa Valley.
Intuitive Forager Kerry Clasby talks about losses in California wildfire
Intuitive Forager Kerry Clasby talks about losses she suffered in California's Woolsey Fire in Malibu in November. (Al Mancini/Las Vegas Review-Journal)
Benefit dinner for Kerry Clasby, the Intuitive Forager
Sonia El-Nawal of Rooster Boy Cafe in Las Vegas talks about having a benefit for Kerry Clasby, known as the Intuitive Forager, who suffered losses on her farm in California’s Woolsey Fire in Malibu. (Al Mancini/Las Vegas Review-Journal)
Former President George H.W. Bush dies at 94
Former President George H.W. Bush has died at the age of 94. He died Friday night in Houston, about eight months after the death of his wife, Barbara.
Las Vegans Celebrate Big Snowfall
Las Vegans celebrate big snowfall at Lee Canyon.
Exploring old mines for denim jeans and other vintage items
Caden Gould of Genoa, Nev. talks about his experiences looking for vintage denim jeans and other items in old mines and other places areas across Nevada and the west.
Officers share photo of dead gunman after Las Vegas shooting
A little over an hour after SWAT officers entered Stephen Paddock's suite at Mandalay Bay, Las Vegas police officers far from the scene were already sharing cell phone photos of the dead Oct. 1 gunman.
News Headlines
Add Event
Home Front Page Footer Listing
You May Like

You May Like