Station Casinos posts bigger 4Q loss on charges

Apr 1, 2009 7:58 PM
Staff & Wire Reports |

Station Casinos Inc. said late Tuesday it posted a bigger fourth-quarter loss as results were hurt by lower casino revenue, hefty charges to write down assets and expenses to develop new gaming opportunities.

The casino operator posted a bigger loss of $3.19 billion, compared with a loss of $437.4 million a year earlier. Results in the most recent quarter included $3.39 billion in write-downs and other charges, including costs to write down assets, investments in joint ventures and land held for development to fair value.

Total operating expenses soared to $3.66 billion from $734.8 million, which included $1.3 million in costs to develop new gaming opportunities, $3.1 million in lease termination costs, and $2 million in severance expenses.

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For the quarter ended Dec. 31, revenue declined 19 percent to $289.7 million from $357.5 million a year ago.

Casino revenue slipped to $206.4 million from $255.6 million, and food and beverage sales declined to $52.1 million from $63.8 million.

For the year, the company posted a wider loss of $3.27 billion, compared with a loss of $395.5 million.

Revenue slipped 10 percent to $1.3 billion from $1.45 billion.

Station Casinos is based in Las Vegas and operates entertainment complexes and casinos. Last month, Boyd Gaming Corp. (BYD) said it wanted to acquire some or all of Station Casinos' assets.

Boyd had offered to pay $950 million for most of Station's assets, except for those secured by certain loans, but Station Casinos turned down the takeover offer.

Instead, Station Casinos extended its deadline to work through a plan to restructure its debt.