Revenue up for Station Casinos - 19th February 2015

Profiles

Gaming Casinos Markets Business Entertainment

Station Casinos reported revenue of US$333.7m for the fourth quarter, up 2.2 per cent from the same quarter in 2013.

For the full year, Station’s net revenue was $1.3bn, a 2.8 per cent increase from the year before. Station Casinos had earnings of $33.5m for the quarter, slightly less than the $ 3.8m of one year before. For the year, the company’s net income was $83.3m, compared with a loss of $104.4m in 2013.

Station reported revenue increases in every major operating category for both the fourth quarter and full calendar year in 2014. Casino revenue rose five per cent to $234.9m for the fourth quarter and it rose 1.7 per cent to $897.4m for the full year.

Meanwhile, food and beverage revenue increased 5.3 per cent for the quarter and 1.5 per cent for the year. Room revenue increased 13 per cent for the quarter and 6.6 per cent for the year. Other revenue increased 8.5 per cent for the quarter and 4.6 per cent for the year.

Marc Falcone, Station’s chief financial officer, told analysts in a conference call that improvements in the Las Vegas economy seem to be spilling over into better business for the company. “It may finally appear we have reached that inflection point we have been discussing for several years,” he said.

“The encouraging trends of growth in average hourly earnings, in addition to lower gas prices, should continue to have a positive impact on discretionary income. And we believe the strength in our overall fourth quarter spending may be a sign that our guests now have more money to spend on gaming.”

Station is investing $55m into improvements at Red Rock Resort and Green Valley Ranch. Much of the work at Red Rock has already been completed, and Falcone said Green Valley will be finished this year. The company’s long-term debt at the end of the year was $2.1bn.