Station Casinos Announces Record First Quarter Results and Additional Expansion Plans.LAS VEGAS Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. -- Station Casinos Station Casinos Inc. NYSE: STN is a Las Vegas, Nevada based gaming company. The company purchased several sites that were gaming-entitled meaning that major casinos can be built at that location without additional approvals. , Inc. (NYSE NYSE See: New York Stock Exchange : STN (SuperTwisted Nematic) A passive matrix LCD technology that provides better contrast than twisted nematic (TN) by twisting the molecules from 180 to 270 degrees. See DSTN. - News; "Station" or the "Company") today announced the results of its operations for the first quarter ended March 31, 2005. Highlights include: --Same-store revenues from the Las Vegas operations increased 18% over the prior year's first quarter, marking the fifth consecutive quarter of double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. same-store revenue growth on a year-over-year basis. Excluding Green Valley Ranch ranch, large farm devoted chiefly to raising and breeding cattle, horses, sheep, and goats. The cattle ranch was introduced from Latin America to Texas and the plains of the W United States and Canada. , the Major Las Vegas Operations increased 14% over the prior year's first quarter. --Record first quarter EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (1) of $120.9 million, an increase of 28% over the prior year's first quarter. --Same-store EBITDA from the Las Vegas operations increased 34% over the prior year's first quarter. Excluding Green Valley Ranch, the Major Las Vegas Operations increased 30% over the prior year's first quarter. --Adjusted for non-recurring items and development expense, diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $0.70 compared to $0.51 in the prior year's first quarter, an increase of 37%. --Same-store EBITDA margins for the Las Vegas operations increased to 42.9% from 37.9% in the prior year's first quarter. --The Office of the Secretary of the Department of the Interior indicated its approval of the conveyance The transfer of ownership or interest in real property from one person to another by a document, such as a deed, lease, or mortgage. conveyance n. of approximately 145 acres of property located near Kalamazoo, Michigan “Kalamazoo” redirects here. For other uses, see Kalamazoo (disambiguation). Kalamazoo is the largest city in the southwest region of the U.S. state of Michigan. As of the 2000 census, the city had a total population of 77,145. into trust for the benefit of the Gun Lake Tribe tribe [Lat., tribus: the tripartite division of Romans into Latins, Sabines, and Etruscans], a social group bound by common ancestry and ties of consanguinity and affinity; a common language and territory; and characterized by a political and economic , subject to the publication of notice and expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created of the 30-day waiting period required by law. --The announcement of master-planned expansions at Santa Fe Santa Fe, city, Argentina Santa Fe, city (1991 pop. 341,000), capital of Santa Fe prov., NE Argentina, a river port near the Paraná, with which it is connected by canal. Station and Fiesta Henderson Henderson. 1 City (1990 pop. 25,945), seat of Henderson co., NW Ky., on the Ohio River, in an oil, coal, tobacco, corn, and livestock area; founded 1797, inc. as a city 1867. . Results of Operations The Company's net revenues for the first quarter ended March 31, 2005 were approximately $273.5 million, an increase of 14% compared to the prior year's first quarter. The Company reported EBITDA for the quarter of $120.9 million, an increase of 28% compared to the prior year's first quarter. For the first quarter, Adjusted Earnings (2) applicable to common stock were $48.4 million, or $0.70 per share, an increase of 37% over the prior year's $0.51 per share on a comparable basis. This marks the thirteenth consecutive quarter of year-over-year growth of Adjusted EBITDA, EBITDA margin and EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. . During the first quarter, the Company incurred preopening costs related to projects under development of $0.6 million, loss on the early retirement of debt of $0.7 million, $8.1 million to buyout Buyout The purchase of a company or a controlling interest of a corporation's shares. Notes: A leveraged buyout is accomplished with borrowed money or by issuing more stock. various leases on property adjacent to the current Wild Wild West property and $2.6 million in costs to develop new gaming opportunities, primarily related to Native American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of gaming. Including these items, the Company reported net income of $40.6 million and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. earnings applicable to common stock of $0.59 per share. The Company's earnings from its Green Valley Ranch Station joint venture for the first quarter were $12.2 million, which represents a combination of Station's management fee plus 50% of Green Valley Ranch Station's operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. . For the quarter, Green Valley Ranch Station generated EBITDA before management fees of $27.0 million, a 52% increase compared to the prior year's first quarter. These numbers include a full quarter of results from the $125 million expansion of that property, which opened in December December: see month. 2004 and included approximately 300 new hotel rooms and 25,000 square feet of meeting and convention space. Las Vegas Market Results Same-store (Major Las Vegas Operations and Green Valley Ranch Station) net revenues for the quarter increased to $296.8 million, an 18% increase compared to the prior year's quarter, while EBITDA from those operations increased 34% to $127.3 million. "Our fifth consecutive quarter of double-digit same-store revenue growth is further evidence of why we believe that, on a risk adjusted basis, the Las Vegas local's market is the best gaming market in the country. The stable regulatory, political and tax environment in Nevada Nevada (nəvăd`ə, –vä–), far western state of the United States. It is bordered by Utah (E), Arizona (SE), California (SW, W), and Oregon and Idaho (N). , the strong Las Vegas economy and positive supply/demand characteristics in this market are the drivers of our business model," said Lorenzo J. Fertitta Fertitta is an Italian-American mobster family from Cefalù, Sicily. The mob moved to New York City in the early 20th Century. Most of the family moved to Baltimore to start a new empire because the Gambinos ran them down. , vice chairman and president. EBITDA and Adjusted Earnings are not generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ") measurements and are presented solely as a supplemental disclosure because the Company believes that they are widely used measures of operating performance in the gaming industry and as a principal basis for valuation of gaming companies. EBITDA and Adjusted Earnings are further defined in footnotes 1 and 2, respectively. Gun Lake Tribe "Land into Trust" Update Pursuant to a Memorandum dated April 18, 2005, the Office of the Secretary of the United States Department of the Interior The United States Department of the Interior (DOI) is a Cabinet department of the United States government that manages and conserves most federally owned land. These responsibilities are different from other countries' Interior Departments or ministries, which tend to focus indicated its approval of the conveyance of approximately 145 acres of property located approximately 25 miles north of Kalamazoo, Michigan into trust for the benefit of the Match-E-Be-Nash-She-Wish Match-E-Be-Nash-She-Wish (also spelled with various transliterations as Mashipinashiwish, Me-chee-pee-nai-she-insh, Mash-i-pi-wish , Mitch-e-pe-nain-she-wish, or Mat-che-pee-na-che-wish) is the name of a chief of a Potawatomi Indian group. Band of Pottawatomi Indians INDIANS. The aborigines of this country are so called. 2. In general, Indians have no political rights in the United States; they cannot vote at the general elections for officers, nor hold office. (the "Gun Lake Tribe"), subject to publication of notice and expiration of the 30-day waiting period required by law. "The Department of the Interior's action represents a significant step in the process and we look forward to working with the Gun Lake Tribe to bring this project to fruition fru·i·tion n. 1. Realization of something desired or worked for; accomplishment: labor finally coming to fruition. 2. Enjoyment derived from use or possession. 3. ," stated Fertitta. The Company owns a 50% interest in MPM MPM Multi-Processing Module (Apache) MPM Manufacturing Process Management MPM Milwaukee Public Museum MPM MMW (Millimeter Wave) Power Module MPM Master of Project Management (degree) Enterprises, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ("MPM"). MPM and the Gun Lake Tribe are parties to development and management agreements, pursuant to which MPM will assist the Gun Lake Tribe in developing and operating a gaming and entertainment project to be located on that property. The management agreement provides for a term of seven years and provides for a management fee of 30% of the project's net income. Pursuant to the terms of MPM's operating agreement An operating agreement is an agreement among limited liability company ("LLC") members governing the LLC's business, and Member's financial and management rights and duties. No state requires an LLC to have an Operating agreement. , the Company's portion of that management fee, on an annual basis, is 50% of the first $24 million of management fees earned, 83% of the next $24 million of management fees earned and 93% of any management fees earned in excess of $48 million. Master-Planned Expansions at Santa Fe Station and Fiesta Henderson As previously announced, the Company will begin construction on the Phase II expansion of Red Rock Resort later this year. Today the Company announced the next two projects in the series of master-planned expansions and new properties expected to be developed in the Las Vegas local's market over the next several years. "Based on the extremely favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. supply/demand characteristics of the Las Vegas local's market, we have decided to accelerate both the development of master-planned expansions at our existing properties and the development of new properties. We believe that these high-return local development opportunities, combined with our Native American development opportunities, will provide us with a strong growth pipeline for years to come," said Fertitta. This series of projects includes the Phase III Noun 1. phase III - a large clinical trial of a treatment or drug that in phase I and phase II has been shown to be efficacious with tolerable side effects; after successful conclusion of these clinical trials it will receive formal approval from the FDA master-planned expansion of Santa Fe Station. This expansion project will include a 2,900-space parking garage, a 500-seat buffet A buffet is a meal serving system where patrons serve themselves. It is a popular method of feeding large numbers of people with minimal staff. The term is also used to describe a sideboard, an antique form of furniture which was sometimes used to offer the dishes of a buffet meal , 400 additional slot machines, a remodel re·mod·el tr.v. re·mod·eled also re·mod·elled, re·mod·el·ing also re·mod·el·ling, re·mod·els also re·mod·els To make over in structure or style; reconstruct. and expansion of the race and sports book, a 15,000 square-foot meeting and banquet A banquet is a large public meal or feast, complete with main courses and desserts. It usually serves a purpose, such as a charitable gathering, a ceremony, or a celebration. Sometimes a banquet consists of only desserts, but it is advisable to include main courses as well. facility and a new center bar. Construction of this project is expected to begin in August 2005 and be completed in September September: see month. 2006. The estimated cost of this project is $120 million. "We believe the additional amenities will satisfy the increasing demand in the rapidly growing northwest portion of the Las Vegas Valley," said Fertitta. This series of projects also includes the Phase II master-planned expansion of Fiesta Henderson. This expansion project will include a 1,500-space parking garage, 350 additional slot machines, a remodeled and expanded race and sports book and a 12-screen movie theater complex. Construction of this project is expected to begin in July July: see month. 2005 and be completed by June June: see month. 2006. The estimated cost of this project is $70 million. "This portion of Henderson is also growing very quickly and this expansion will allow us to meet the market demand," stated Fertitta. Balance Sheet Items and Capital Expenditures Long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. was $1.41 billion as of March 31, 2005. Total capital expenditures totaled $147.3 million for the first quarter. Expansion and project capital expenditures included $54.4 million for Red Rock Resort, $5.5 million for the Phase II master-planned expansion of Santa Fe Station, $39.1 million for the purchase of land adjacent to the current Wild Wild West property, $15.1 million for the purchase of 96 acres of gaming-entitled property in Reno Reno (rē`nō), city (1990 pop. 133,850), seat of Washoe co., W Nev., on the Truckee River; inc. 1903. Tourism has been the major industry since gambling was legalized in Nevada in 1931. , Nevada and $8.7 million for the bowling center expansion at Sunset Station. As of March 31, 2005, the Company's debt to cash flow ratio as defined in its bank credit facility was 3.5 to 1. Fiscal 2005 and 2006 Guidance The Company expects EBITDA of approximately $113 million to $117 million for the second quarter of 2005 (excluding development expense and other non-recurring items). This would result in earnings per share ("EPS") of $0.61 to $0.65 for the second quarter, assuming 69.5 million fully diluted shares. This guidance assumes revenue growth for the second quarter of 9% to 12% over the prior year's quarter in Las Vegas (excluding Green Valley Ranch Station) with an effective tax rate of 36.5%. For the remainder of 2005, the Company expects EBITDA of approximately $101 million to $105 million for the third quarter and $113 million to $117 million for the fourth quarter, excluding development expense and other non-recurring items. The guidance for the third and fourth quarters assumes approximately $5 million of construction disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. in each of those quarters relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Santa Fe Station and Fiesta Henderson master-planned expansions. This would result in EPS of $0.50 to $0.54 for the third quarter and $0.61 to $0.65 for the fourth quarter. As a result, the Company now expects EBITDA for 2005 of approximately $448 million to $460 million (excluding development expense and non-recurring items) and Adjusted Earnings applicable to common stock of approximately $2.43 to $2.55, assuming 69.5 million fully diluted shares. This guidance assumes revenue growth for 2005 of 7% to 11% over the prior year in Las Vegas (excluding Green Valley Ranch Station) with an effective tax rate of 36.5%. In addition, the Company is updating its fiscal 2006 guidance. For fiscal 2006, the Company now expects EBITDA of approximately $530 million to $550 million, assuming approximately $6 million of construction disruption relating to the Santa Fe Station and Fiesta Henderson master-planned expansions, which would result in EPS of $2.67 to $2.86. This guidance assumes 3% to 5% revenue growth at the existing properties, the opening of Phase I of Red Rock Resort at the end of the first quarter of 2006, the completion of the Fiesta Henderson expansion by the end of the second quarter of 2006 and the completion of the Santa Fe Station expansion by the end of the third quarter of 2006. This guidance also assumes an effective tax rate of 36.5% and 70 million diluted shares outstanding. Conference Call Information The Company will host a conference call today, Wednesday, April 27, at 9:00 a.m. (Pacific Time) to discuss its first quarter 2005 financial results and provide guidance for the remainder of 2005 and 2006. Interested participants may access the call by dialing the conference operator at (800) 728-2149. A live audio webcast of the call, as well as supplemental tables and charts, will also be available at the Company's website, www.stationcasinos.com (3). A replay of the call will be available from 11:00 a.m. (PT) on April 27, 2005, until 11:00 a.m. (PT) on May 4, 2005 at (800) 633-8284. The reservation number is 21243091. Company Information and Forward Looking Statements Station Casinos, Inc. is the leading provider of gaming and entertainment to the residents of Las Vegas, Nevada. Station's properties are regional entertainment destinations and include various amenities, including numerous restaurants, entertainment venues, movie theaters, bowling and convention/banquet space, as well as traditional casino casino or cassino (both: kəsē`nō). 1 Card game played with a full deck by two to four players. Its origins are obscure though it probably traces back to the Italian game of Scopa. gaming offerings such as video poker Video poker is a casino game based on five-card draw poker. It is played on a computerized console which is a similar size to a slot machine. History Video poker first became commercially viable when it became economical to combine a television-like monitor with a , slot machines, table games, bingo bingo Game of chance played with cards having a grid of numbered squares corresponding to numbered balls drawn at random. When a number on the card is drawn, the players cover that number (should they have it); the game is won by covering a certain number of squares in a row and race and sports wagering wa·ger n. 1. a. An agreement under which each bettor pledges a certain amount to the other depending on the outcome of an unsettled matter. b. A matter bet on; a gamble. 2. . Station owns and operates Palace Station Hotel & Casino, Boulder Boulder, city, United States Boulder, city (1990 pop. 83,312), seat of Boulder co., N central Colo.; inc. 1871. A Rocky Mountain resort and a suburb of Denver, it is the seat of the Univ. of Colorado (1876). Station Hotel & Casino, Santa Fe Station Hotel & Casino, Wildfire Casino and Wild Wild West Gambling Hall & Hotel in Las Vegas, Nevada, Texas Nevada is a city in Collin County, Texas, United States. The population was 563 at the 2000 census. First settled in 1835 by John McMinn Stambaugh and named McMinn Chapel Station Gambling Hall & Hotel and Fiesta Rancho ran·cho n. pl. ran·chos Southwestern U.S. 1. A hut or group of huts for housing ranch workers. 2. A ranch. Casino Hotel in North Las Vegas, Nevada North Las Vegas is a city in Clark County, Nevada, United States. As of the 2000 census, the city had a total population of 115,488, with a Census Bureau estimate of 197,567 as of 2006, and a Clark County estimate of 202,520 as of July 1, 2006 [2]. , and Sunset Station Hotel & Casino, Fiesta Henderson Casino Hotel, Magic Star Casino and Gold Rush Casino in Henderson, Nevada Henderson is a city in Clark County, Nevada, United States, seven miles southeast of Las Vegas. As of the 2000 census, the city had a total population of 175,381, with a 2006 Census estimate placing the population at 240,614. . Station also owns a 50% interest in both Barley's Casino & Brewing brewing: see beer. Company and Green Valley Ranch Station Casino in Henderson, Nevada and a 6.7% interest in the Palms Casino Resort in Las Vegas, Nevada. In addition, Station manages the Thunder Valley Thunder Valley is the sixteenth novel in World of Adventure series by Gary Paulsen. The story is about Jeremy and Jason Parsons who are left to take care of their grandparents Thunder Valley Ski Lodge while their grandma goes to visit their grandfather in hospital Casino near Sacramento, California “Sacramento” redirects here. For other uses, see Sacramento (disambiguation). Sacramento is the capital of the State of California and the county seat of Sacramento County. on behalf of the United Auburn Indian Community The United Auburn Indian Community (UAIC) is a Native American tribe comprised mostly of Miwok and Maidu Indians indigenous to the Sacramento Valley region. The historic Auburn Rancheria is located in the Sierra Nevada foothills near Auburn, California. . This press release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. with respect to the business, financial condition, results of operations, dispositions, acquisitions and expansion projects of the Company and its subsidiaries which involve risks and uncertainties that cannot be predicted or quantified, and consequently, actual results may differ materially from those expressed or implied herein. Such risks and uncertainties include, but are not limited to, financial market risks, the ability to maintain existing management, integration of acquisitions, competition within the gaming industry, the cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. nature of the hotel business and gaming business, economic conditions, regulatory matters and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and other risks described in the filings of the Company with the Securities and Exchange Commission, including, but not limited to, the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2004, and its Registration Statement on Form S-4 File No. 333-113986. All forward-looking statements are based on the Company's current expectations and projections about future events. All forward-looking statements speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" and the Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Additional financial information, including presentations from recent investor conferences, is available in the "Investors" section of the Company's website at www.stationcasinos.com (3). Construction projects such as Red Rock Resort and the master-planned expansions of Santa Fe Station and Fiesta Henderson entail entail, in law, restriction of inheritance to a limited class of descendants for at least several generations. The object of entail is to preserve large estates in land from the disintegration that is caused by equal inheritance by all the heirs and by the ordinary significant risks, including shortages of materials or skilled labor, unforeseen regulatory problems, work stoppages, weather interference, floods and unanticipated cost increases. The anticipated costs and construction periods are based on budgets, conceptual design documents and construction schedule estimates. There can be no assurance that the budgeted costs or construction period will be met. Development of the proposed gaming and entertainment project with the Gun Lake Tribe and the operation of Class III gaming at that project are subject to certain governmental and regulatory approvals, including, but not limited to, the governor of the State of Michigan Michigan (mĭsh`ĭgən), upper midwestern state of the United States. It consists of two peninsulas thrusting into the Great Lakes and has borders with Ohio and Indiana (S), Wisconsin (W), and the Canadian province of Ontario (N,E). signing the Gun Lake Tribe's state gaming compact, the Department of the Interior completing the process of taking land into trust for the benefit of the Gun Lake Tribe and approval of the management agreement by the National Indian Gaming Commission. No assurances can be given as to when, or if, these governmental and regulatory approvals will be received. (1) EBITDA consists of net income (loss) plus income tax provision (benefit), interest and other expense, loss on early retirement of debt, preopening expenses, lease buyouts, depreciation, amortization and development expense. EBITDA is presented solely as a supplemental disclosure because the Company believes that it is a widely used measure of operating performance in the gaming industry and as a principal basis for valuation of gaming companies. The Company believes that in addition to cash flows and net income, EBITDA is a useful financial performance measurement for assessing the operating performance of the Company. Together with net income and cash flows, EBITDA provides investors with an additional basis to evaluate the ability of the Company to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. and service debt and incur capital expenditures. To evaluate EBITDA and the trends it depicts, the components should be considered. The impact of income tax provision (benefit), interest and other expense, loss on early retirement of debt, preopening expenses, lease buyouts, depreciation, amortization and development expense, each of which can significantly affect the Company's results of operations and liquidity and should be considered in evaluating the Company's operating performance, cannot be determined from EBITDA. Further, EBITDA does not represent net income or cash flows from operating, financing and investing activities as defined by generally accepted accounting principles ("GAAP") and does not necessarily indicate cash flows will be sufficient to fund cash needs. It should not be considered as an alternative to net income, as an indicator of the Company's operating performance or to cash flows as a measure of liquidity. In addition, it should be noted that not all gaming companies that report EBITDA or adjustments to such measures may calculate EBITDA or such adjustments in the same manner as the Company, and therefore, the Company's measure of EBITDA may not be comparable to similarly titled measures used by other gaming companies. A reconciliation of EBITDA to net income (loss) is included in the financial schedules accompanying this release. (2) Adjusted Earnings excludes development expense, preopening expenses, lease buyouts and loss on early retirement of debt. Adjusted Earnings is presented solely as a supplemental disclosure because the Company believes that it is a widely used measure of operating performance in the gaming industry and as a principal basis for valuation of gaming companies, as this measure is considered by the Company to be a better measure on which to base expectations of future results than GAAP net income. A reconciliation of Adjusted Earnings and EPS to GAAP net income (loss) and EPS is included in the financial schedules accompanying this release. (3) The hyperlink A predefined linkage between one object and another. See hypertext. hyperlink - anchor to the Company's URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. is included herein solely for the convenience of investors in accessing the audio webcast of the first quarter conference call. All other references herein to the Company's URL are inactive in·ac·tive adj. 1. Not active or tending to be active. 2. a. Not functioning or operating; out of use: inactive machinery. b. textual tex·tu·al adj. Of, relating to, or conforming to a text. tex  tu·al·ly adv. references. None of the
information contained on the Company's website shall be deemed
incorporated by reference or otherwise included herein.
Station Casinos, Inc.
Condensed Consolidated Balance Sheets
(amounts in thousands)
(unaudited)
March 31, December 31,
2005 2004
----------- ------------
Assets:
Cash and cash equivalents $ 56,237 $ 68,417
Receivables, net 20,354 21,452
Other current assets 30,180 29,652
----------- ------------
Total current assets 106,771 119,521
Property and equipment, net 1,470,234 1,367,957
Other long-term assets 591,805 558,106
----------- ------------
Total assets $ 2,168,810 $ 2,045,584
=========== ============
Liabilities and stockholders' equity:
Current portion of long-term debt $ 24 $ 16,917
Other current liabilities 152,071 159,099
----------- ------------
Total current liabilities 152,095 176,016
Revolving credit facility 135,000 51,500
Senior and senior subordinated notes 1,265,734 1,265,686
Other debt 6,030 6,037
Interest rate swaps, mark-to-market (7,407) (1,927)
Other long-term liabilities 79,981 59,351
----------- ------------
Total liabilities 1,631,433 1,556,663
Stockholders' equity 537,377 488,921
----------- ------------
Total liabilities and stockholders'
equity $ 2,168,810 $ 2,045,584
=========== ============
Station Casinos, Inc.
Condensed Consolidated Statements of Operations
(amounts in thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
-----------------------
2005 2004
---------- ----------
Operating revenues:
Casino $ 204,013 $ 175,494
Food and beverage 36,837 34,369
Room 16,381 14,913
Other 11,183 10,059
Management fees 23,276 20,970
---------- ----------
Gross revenues 291,690 255,805
Promotional allowances (18,230) (16,840)
---------- ----------
Net revenues 273,460 238,965
---------- ----------
Operating costs and expenses:
Casino 70,728 66,540
Food and beverage 25,242 23,780
Room 5,202 4,991
Other 3,930 3,889
Selling, general and administrative 43,939 41,189
Corporate expense 14,192 11,473
Development expense 2,611 4,002
Depreciation and amortization 24,353 19,450
Lease buyouts 8,094 -
Preopening expenses 617 -
---------- ----------
198,908 175,314
---------- ----------
Operating income 74,552 63,651
Earnings from joint ventures 10,690 7,031
---------- ----------
Operating income and earnings from joint
ventures 85,242 70,682
---------- ----------
Other income (expense):
Interest expense, net (18,966) (22,449)
Interest and other expense from joint
ventures (1,684) (1,386)
Loss on early retirement of debt (678) (93,265)
Other 87 (79)
---------- ----------
(21,241) (117,179)
---------- ----------
Income (loss) before income taxes 64,001 (46,497)
Income tax (provision) benefit (23,361) 16,739
---------- ----------
Net income (loss) $ 40,640 $ (29,758)
========== ==========
Basic and diluted earnings (loss) per common
share:
Net income (loss)
Basic $ 0.60 $ (0.48)
Diluted $ 0.59 $ (0.48)
Weighted average common shares outstanding
Basic 67,435 62,268
Diluted 69,140 62,268
Dividends paid per common share $ 0.210 $ 0.125
Station Casinos, Inc.
Summary Information and
Reconciliation of Net Income (Loss) to EBITDA
(amounts in thousands, except occupancy percentage and ADR)
(unaudited)
Three Months Ended
March 31,
-----------------------
2005 2004
--------- ---------
Major Las Vegas Operations (a):
-------------------------------
Net revenues $ 239,362 $ 210,597
Net income $ 40,506 $ 28,229
Income tax provision 23,789 16,226
Interest and other expense, net 13,085 14,397
Depreciation and amortization 22,813 18,459
Preopening expenses 94 -
--------- ---------
EBITDA $ 100,287 $ 77,311
========= =========
Green Valley Ranch Station (50% owned):
---------------------------------------
Net revenues $ 57,408 $ 39,891
Net income $ 15,740 $ 9,444
Interest and other expense, net 6,049 4,139
Depreciation and amortization 5,215 4,131
--------- ---------
EBITDA $ 27,004 $ 17,714
========= =========
Same-Store Operations (b):
--------------------------
Net revenues $ 296,770 $ 250,488
Net income $ 56,246 $ 37,673
Income tax provision 23,789 16,226
Interest and other expense, net 19,134 18,536
Depreciation and amortization 28,028 22,590
Preopening expenses 94 -
--------- ---------
EBITDA $ 127,291 $ 95,025
========= =========
Total Station Casinos, Inc. (c):
--------------------------------
Net income (loss) $ 40,640 $ (29,758)
Income tax provision (benefit) 23,361 (16,739)
Interest and other expense, net 20,563 23,914
Depreciation and amortization 24,353 19,450
Lease buyouts 8,094 -
Development expense 2,611 4,002
Preopening expenses 617 -
Loss on early retirement of debt 678 93,265
--------- ---------
EBITDA $ 120,917 $ 94,134
========= =========
Occupancy percentage 97% 96%
ADR $ 65 $ 59
(a) The Major Las Vegas Operations include the wholly owned properties
of Palace Station, Boulder Station, Texas Station, Sunset Station,
Santa Fe Station, Fiesta Rancho and Fiesta Henderson.
(b) Same-Store Operations include the Major Las Vegas Operations plus
the total operations of Green Valley Ranch Station.
(c) Total Station Casinos, Inc. includes the Major Las Vegas
Operations, Wild Wild West, Wildfire, Magic Star (since August 2,
2004), Gold Rush (since August 2, 2004), the Company's earnings
from joint ventures, management fees and Corporate expense.
Station Casinos, Inc.
Reconciliation of GAAP Net Income (Loss) and EPS
to Adjusted Earnings and EPS
(amounts in thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
----------------------
2005 2004
--------- ---------
Adjusted Earnings
Net income (loss) $ 40,640 $ (29,758)
Development expense, net 1,697 2,601
Loss on early retirement of debt, net 441 60,622
Lease buyouts, net 5,261 -
Preopening expenses, net 401 -
--------- ---------
Adjusted Earnings $ 48,440 $ 33,465
========= =========
Adjusted basic earnings (loss) per common
share:
Net income (loss) $ 0.60 $ (0.48)
Development expense, net 0.02 0.04
Loss on early retirement of debt, net 0.01 0.98
Lease buyouts, net 0.08 -
Preopening expenses, net 0.01 -
--------- ---------
Adjusted basic earnings per common share $ 0.72 $ 0.54
========= =========
Weighted average common shares outstanding -
basic 67,435 62,268
Adjusted diluted earnings (loss) per common
share:
Net income (loss) $ 0.59 $ (0.48)
Effect of dilution for positive adjusted
earnings - 0.03
Development expense, net 0.02 0.04
Loss on early retirement of debt, net 0.01 0.92
Lease buyouts, net 0.07 -
Preopening expenses, net 0.01 -
--------- ---------
Adjusted diluted earnings per common share $ 0.70 $ 0.51
========= =========
Weighted average common shares outstanding -
diluted 69,140 65,531
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