Locals gaming giant Station Casinos, whose properties include Palace Station, Green Valley Ranch and Red Rock Resort, reported its third quarter earnings today.
Company: Station Casinos LLC
Revenue: $311 million, a 2.1 percent increase from the third quarter of 2013.
Loss: $20.8 million, compared to $4.7 million the same period last year. Including losses attributable to noncontrolling interests, the net loss was $30.3 million. The company closed its online gaming business in New Jersey during the quarter.
What it means: Station’s adjusted earnings before interest, income taxes, depreciation, amortization and management fees — its cash flow — was $89.6 million, an 11.6 percent increase from the same period last year.
That number excludes Fertitta Interactive, Station’s online gaming wing, and it marks Station’s 14th consecutive quarter of growth in this category.
Including Fertitta Interactive, the company’s cash flow was $87.7 million for the quarter.
In September, Fertitta Interactive’s Ultimate Gaming pulled out of the New Jersey online gaming market.
Marc Falcone, Station’s chief financial officer, told analysts in a conference call that Station is “quite pleased” with its third-quarter performance, despite persistent weakness in the locals gaming market.
He pointed to a number of positive indicators in the Las Vegas economy, such as encouraging employment numbers, and was optimistic that ongoing stabilization will eventually translate into locals spending more on gambling.
In the conference call, Falcone also addressed the company’s outlook after a California ballot measure it had a stake in was defeated last week.
Station wanted to work with the North Fork Rancheria of Mono Indians to build a casino in California’s Central Valley, and the defeat of Proposition 48 — which would have allowed the casino — seemed to put an end to that project.
However, Falcone told analysts that Station and the tribe are still exploring “other methods” of obtaining approval to build the casino. He declined to offer any more specifics.
Station reported modest year-over-year increases in casino, hotel room, and food and beverage revenue. Its long-term debt stands at $2.1 billion.
Quote: “Station Casinos posted increases in operating income across all its major operating departments for the third quarter. We continue to exhibit our operating strength, with net revenue increasing 2.1 percent and 11.6 percent growth in (cash flow) compared to the prior year period.” — CFO Marc Falcone