Station Casinos cuts losses in fourth quarter
29 March 2012
29 March 2012 2:56 p.m.
Locals casino giant Station Casinos LLC says revenue is up and operations are improving, but not enough to prevent a $4.2 million loss for the fourth quarter.
The company issued its earnings report Thursday morning for the quarter that ended Dec. 31 and had a 10-minute conference call to elaborate on results.
A release issued by the company said the loss compared with earnings of $74.2 million the same quarter a year earlier, but results were compared with earnings reported by Station Casinos Inc., the entity that held the company prior to the restructuring of the company through the U.S. Bankruptcy Court that ended June 17.
The company reported revenue of $303.5 million compared with $278.3 million in the same quarter a year earlier.
The company attributed improvements in cash flow to the launching of its “We Love Locals” marketing and advertising program, enhancing its Boarding Pass loyalty club and the opening of the Gun Lake Casino in Michigan in February 2011. Station has a development and management agreement with the Match-E-Be-Nash-She-Wish Band of Pottawatomi Indians.
Like other Southern Nevada properties, Station is seeing improvements in occupancy rates and average daily room rates. In today’s report, the company said for the fourth quarter the occupancy rate climbed to 86 percent from 81 percent in the same quarter a year earlier and the room rate went to $69 from $65.
In the conference call, the company also reported gaming revenue up 1.7 percent to $220.5 million.
The company also reported paying $6.5 million bonuses to employees after the closing of the bankruptcy case and reinstated its matching contribution to employee retirement plans and a free HMO option for medical care.
For all of 2011, Station narrowed losses to $40.8 million on revenue of $1.18 billion from $195.6 million on revenue of $1.11 billion in 2010.
The restructured company now operates most of the valley’s Station and Fiesta properties, including full ownership of Green Valley Ranch. It no longer manages California’s Thunder Valley tribal casino.
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