Station Casinos Announces Fourth Quarter Results
The Company's net revenues for the fourth quarter ending December 31, 2009, were approximately $256.5 million, a decrease of 11.5% compared to the prior year's fourth quarter.
Station Casinos, Inc. announced the results of its operations for the fourth quarter ended December 31, 2009.
Results of Operations
The Company's net revenues for the fourth quarter ending December 31, 2009, were approximately $256.5 million, a decrease of 11.5% compared to the prior year's fourth quarter. The Company reported Adjusted EBITDA for the quarter of $71.0 million, a decrease of 27.3% compared to the prior year's fourth quarter. For the fourth quarter, the Company reported a net loss of $1.13 billion as compared to a net loss of $3.19 billion in the prior year’s fourth quarter.
In connection with the Chapter 11 case to reorganize, the company recorded net reorganization items of $5.2 million in the fourth quarter. These reorganization items represent professional fees and other costs incurred as a direct result of the Chapter 11 cases of $18.4 million, partially offset by an adjustment of swap carrying values of $13.2 million.
In addition, during the fourth quarter, the Company incurred $1.29 billion in write-downs and other charges, which included non-cash impairment charges to write down certain portions of our goodwill, intangible assets, investments in joint ventures, land held for development, and property and equipment to their fair value, lease termination expenses, losses on asset disposals, a reserve for a note receivable from an unconsolidated affiliate, and severance expense. The Company also incurred $125.1 million of write-downs and other charges, net at its 50% owned joint ventures, $0.5 million in costs to develop new gaming opportunities, $3.1 million of expense related to equity-based awards, $1.7 million of preopening expenses including preopening expenses of its joint ventures, and a gain of $0.4 million related to its deferred compensation plan.
The Company’s fourth quarter earnings from its Green Valley Ranch joint venture were $2.1 million, which represents a combination of the Company's management fee plus 50% of Green Valley Ranch’s operating income. For the fourth quarter, Green Valley Ranch generated Adjusted EBITDA before management fees of $8.8 million, a decrease of 44.2% compared to the same period in the prior year. Green Valley Ranch reported a net loss of $2.6 million for the fourth quarter as compared to a net loss of $23.2 million in the same period in the prior year.
Las Vegas Market Results
For the fourth quarter, net revenues from the Major Las Vegas Operations, excluding Green Valley Ranch and Aliante Station, were $234.0 million, a 10.8% decrease compared to the prior year’s fourth quarter, while Adjusted EBITDA from those operations decreased 17.8% to $67.2 million from $81.8 million in the same period in the prior year. The Major Las Vegas Operations reported a net loss of $272.8 million for the fourth quarter as compared to a net loss of $1.22 billion in the same period in the prior year.
Adjusted EBITDA is not a generally accepted accounting principle (“GAAP”) measurement and 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 is a principal basis for the valuation of gaming companies. EBITDA and Adjusted EBITDA are further defined in footnote 1.
Balance Sheet and Capital Expenditures
Long-term debt was $5.92 billion as of December 31, 2009, of which $5.67 billion was classified as liabilities subject to compromise. Total capital expenditures were $15.0 million for the fourth quarter which consisted primarily of maintenance capital purchases and other projects. Equity contributions to joint ventures during the fourth quarter were $3.2 million.
