Station Casinos posts quarterly profit
Las Vegas locals casino leader Station Casinos LLC swung to profitability in the first quarter, earning $6.8 million on net revenue of $318.2 million.
With business picking up for the company, net revenue was up 8.4 percent from the year-ago quarter. In the 2011 quarter, as the company was emerging from bankruptcy, it lost $26.5 million.
Station, with 17 casinos in the Las Vegas area plus Native American gaming management deals, said results improved in part thanks to consumers spending more at its casinos.
Casino revenue increased 6.6 percent in the quarter to $230.2 million, with slot and table game revenue both improving.
Food and beverage revenue increased 9.4 percent to $60.9 million, in part because Station took over some restaurant operations that had been leased. The average guest check increased 1.8 percent as diners opened their wallets a bit more.
At the company's hotels, room revenue jumped 17.7 percent to $27.9 million. Occupancy improved from 85.4 percent to 89 percent and the average daily room rate rose from $72 to $80.
''Our first-quarter results were the best quarterly results we have achieved in three years. In addition to being able to drive significant revenue growth during the quarter, we were also able to bring 73 percent of the revenue increase to the bottom line,'' Chief Financial Officer Marc Falcone said in a statement.
''Throughout 2011, Station Casinos focused on rebuilding its brand and image with our team members and guests, and we expected 2012 to show improvements in our operating results and financial performance with a focus on margin improvement and flow through. During the first quarter, we experienced gains in revenue and operating income in all of our major departments,” Falcone said.