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STATION CASINOS INC. REPORTS RECORD REVENUES AND OPERATING INCOME FOR FIRST QUARTER FISCAL 1994

 LAS VEGAS, July 22 /PRNewswire/ -- Station Casinos Inc. (NASDAQ: STCI) announced today record revenues and operating income for the fiscal 1994 first quarter ended June 30, 1993.
 The company reported net revenues for the quarter of $42.7 million, a 19 percent increase over revenues of $35.9 million for the same quarter of the prior fiscal year. Income before taxes for the quarter increased 37 percent to $5.8 million for the first quarter of 1994, compared to $4.2 million for the fiscal 1993 first quarter.
 Pro forma net income increased to $3.8 million, or $0.14 per share, for the quarter, compared to $2.8 million and $0.10 per share for the first quarter of fiscal 1993.
 Commenting on the company's operating results, Frank Fertitta III, chairman and chief executive officer of Station Casinos, stated, "We are delighted with our first quarter operating results, which reflect substantial increases in all of our operating entities. At Palace Station we experienced a 22 percent increase in income before taxes. Our strong performance is also attributable to the success of the Southwest Companies, where income before taxes was up 131 percent, compared to our first quarter last year, primarily due to the operations at Louisiana Downs, which didn't commence until our second quarter last year. Additionally, St. Charles Riverfront Station contributed $1.1 million in income before taxes for the quarter, as a result of the $1 million per month lease of the Casino St. Charles riverboat to Casino Magic. This is particularly gratifying since we have not yet begun riverboat operations in St. Charles, Mo."
 In May 1993, Station Casinos successfully completed a major financing by raising $86 million in its initial public offering of common stock, $110 million in senior subordinated debt and an $80 million bank facility in the form of a reducing revolving line of credit. As a result of terminating its S Corporation election and adopting C Corporation status for federal income taxes, the company was required, under generally accepted accounting principles, to incur a one-time non-cash charge of $5.3 million under Statement of Accounting Standards No. 109 "Accounting for Income Taxes." Additionally, the company wrote off loan issue costs from a previously existing first mortgage of approximately $764,000.
 As a result of these one-time charges, the company experienced net income for the quarter of $60,000. Excluding the one-time deferred tax and loan write-off charges, pro forma net income increased 55 percent to $4.3 million, or $.16 per share on a pro forma basis for first quarter 1994, vs. $2.8 million, or $.10 per share on a pro forma basis for the comparative 1993 quarter.
 Commenting on the adoption of SFAS 109, Glenn C. Christenson, vice president and chief financial officer, stated, "SFAS 109 was recently adopted by the accounting profession. Under previous accounting rules, the process of reinstating deferred taxes would not have impacted the income statement. The charge did not affect cash nor did it affect our day-to-day operations in any way."
 Fertitta stated, "Station Casinos pioneered the `locals market' and we will continue to seek new opportunities to build on our expertise. Our newest projects, St. Charles Riverfront Station and Boulder Station, provide excellent new markets to apply our strategy, which has made us the gaming facility of choice for the local and repeat customer in the Las Vegas market."
 In June, the company announced that it had received a permit from the U.S. Army Corps of Engineers to begin construction of the St. Charles Riverfront site. Groundbreaking for the project was held on June 24. The total project calls for the phased development of a 52-acre site immediately north of the Interstate 70 bridge in St. Charles and is expected to provide easy accessibility and excellent visibility.
 Phase 1 of the St. Charles Riverfront project will include a 90,000-square-foot entertainment, ticketing and lobby facility, mooring space for the riverboat and 2,200 parking spaces. Total cost for the initial phase is estimated to be $50 million, excluding pre-opening costs. Station Casinos will be submitting its gaming application for St. Charles Riverfront Station as soon as the Missouri Gaming Commission begins accepting applications, which is expected to be in late July or early August. The company anticipates that it will begin gaming operations in St. Charles late in 1993 or early in 1994.
 Boulder Station Hotel and Casino, to be constructed on 40 acres in east Las Vegas, will capitalize on the company's "locals oriented" marketing strategy originated with the Palace Station Hotel and Casino, in west Las Vegas. Located at the intersection of I-515 and the Boulder Highway, Boulder Station will be the first major hotel and casino built on the east side of Las Vegas since 1979 and will also provide accessibility and convenience to the local customer.
 Boulder Station will have approximately 235,000-square-feet of main facility area consisting of a 75,000-square-foot casino, a 13-story hotel tower with 300 rooms, five full-service restaurants, 2,000 parking spaces, a 175-seat entertainment lounge and other non-gaming entertainment facilities. Total cost for this project is estimated to be $85 million, excluding pre-opening costs. Ground-breaking on the Boulder Station project is scheduled for August 1993 and construction is expected to be completed by mid-summer of 1994.
 Station Casinos Inc. is a multijurisdictional gaming enterprise that owns and operates the Palace Station Hotel & Casino in Las Vegas, as well as slot machine route management and vending and pay phone service businesses in southern Nevada and Louisiana.
 STATION CASINOS INC.
 Combined Statements of Operations(a)
 (000s omitted, except per share data)
 First Quarter Ended
 June 30, June 30,
 1993 1992
 Operating revenues:
 Casinos $28,284 $24,063
 Food and beverage 6,540 6,354
 Room 3,419 2,919
 Vending, slot route and other 7,271 4,724
 Gross revenues 45,514 38,060
 Less promotional allowances (2,833) (2,125)
 Net revenues 42,681 35,934
 Operating costs and expenses:
 Casino 12,002 9,558
 Food and beverage 4,764 5,105
 Room 1,382 1,405
 Vending, slot route and other 5,200 3,480
 Selling, general and
 administrative 8,301 7,266
 Depreciation and amortization 3,063 2,610
 Total 34,712 29,424
 Operating income 7,969 6,510
 Other income (expense):
 Interest expense, net (2,358) (2,283)
 Other:
 Lease income, net 1,151 --
 Write off of loan acquisition
 costs (764) --
 Other (211) 4
 Total (2,182) (2,279)
 Income before income taxes 5,787 4,231
 Income Taxes(b):
 Pro forma income taxes -- 1,439
 Income tax provision 430 --
 Reinstatement of deferred taxes 5,297 --
 Total 5,727 1,439
 Net income $60 --
 Pro forma net income $3,819 $2,792
 Pro forma earnings per share(c) $0.14 $0.10
 Average shares outstanding 27,762 26,681
 Balance sheet data:
 Cash and cash equivalent $67,589 $10,217
 Total assets $258,060 $169,250
 Long-term debt $139,291 $116,191
 Stockholders' equity $90,789 $34,150
 (a) The combined financial statements of Station Casinos Inc. include the accounts of: the Palace Station Hotel and Casino Inc., St. Charles Riverfront Station Inc., Boulder Station Inc., Southwest Gaming Services Inc. and Southwest Services Inc.
 (b) Upon the completion of its initial public offering, Station Casinos Inc. and its subsidiaries terminated their S Corporations status resulting in a one-time charge of $5.3 million, as required by SFAS 109 "Accounting for Income Taxes." In order to make quarter-to-quarter comparisons, the prior-year comparative quarterly data includes a pro forma tax provision, that includes a deferred tax component.
 (c) Pro forma earnings per share are presented as if the company had terminated its S Corporation status at the beginning of fiscal 1993 and had been subject to income taxes on continuing basis at an effective rate of 34 percent (state income taxes would not have been significant).
 -0- 7/22/93
 /CONTACT: Glenn C. Christenson, VP and CFO of Station Casinos Inc., 702-367-2484/
 (STCI)


CO: Station Casinos Inc. ST: Nevada IN: CNO SU: ERN

JL-LM -- SD005 -- 4334 07/22/93 09:00 EDT
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Date:Jul 22, 1993
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