Stations reports 50% dip in revenue

Apr 24, 2001 7:51 AM

"2001 is a year of transition for our company," explained Glenn Christenson, executive vice president and CFO of Station Casinos Inc. (STN) Monday as he reviewed the company’s reduced revenues and earnings for the first quarter of the fiscal year.

Revenues declined from $254.8 million to $209.7 million and earnings from 35 cents a share to 19 cents a share before certain adjustments.

The decline, he explained, was due primarily to the sale of Station Casino St. Charles and Station Casino Kansas City in December, 2000. And, during the period, the company acquired both the Fiesta Casino Hotel and The Reserve Hotel & Casino in Henderson. The latter property, as has been rumored for some time, will be re-branded as the Fiesta Henderson while the other property will be known as the Fiesta Rancho, Christenson said.

Christenson noted that the decline of 6.4% in same-store net revenues "was about what we expected." He said he expected second quarter net revenues to be down as well but "we see sequential improvement in the newly-acquired properties given a full quarter of operation and enhanced integration. We expect positive same-store, year-over-year comparisons in the third and fourth quarters, along with continued improvement in net revenue and EBITDA from our newly-acquired properties as competitive market conditions and our relative performance improve."

Christenson added energy costs could hurt revenue.

Atlantic City’s future

Gaming industry leaders have lined up to speak on the future of gaming in Atlantic City at the 5th Annual Mid-Atlantic Gaming Congress May 24.

Scheduled are Tom Gallagher, president and CEO of Park Place Entertainment Corp. (PPE), Phil Satre, chairman and CEO of Harrah’s Entertainment Inc. (HET), Paul Rubeli, chairman and CEO of Aztar Corp., and Bill Boyd, chairman and CEO of Boyd Gaming Corp. (BYD).

"The future of gaming in Atlantic City is in the balance," said Lloyd Levenson, senior partner with Cooper Perski April Niedelman Wagenheim and Levenson, "and these panelists will explain how their companies will play a major role."

Their particular vision and predictions about Atlantic City will be very informative."

Also featured at the Congress will be a panel of leading Wall Street gaming analysts; regulators from various North American jurisdictions, and a group that will examine online gaming.

THE INSIDER: Bill Hutchinson, affable general manager of Flagler Dog Track in Miami, Fla., says he will begin schooling races for the upcoming race meet on May 16, 21, and 25. Flagler’s six month-racing season begins on Friday, June 1.

Can you imagine slot machines at "Beautiful Belmont?" Why the great Secretariat will probably roll over in his grave. But, legislation supported by the N.Y. Racing Association has been filed to permit slots at both Aqueduct and Belmont.

Those slot machines at Charles Race Track in West Virginia continue to help improve the bottom line of owner Penn National Gaming Inc. (PENN).

The company reported earnings per share of $0.30 compared to last year’s $0.24.

Without comment, JCC Holding Company, owner, with partner Harrah’s Entertainment Inc. (HET), of Harrah’s New Orleans Casino. Announced that its gross gaming revenues for the month of March was $22.3 million.