Station Casinos third-quarter operating income falls to $8.54 million

By Caroline Salls

Pittsburgh, Nov. 16 - Station Casinos Inc. reported $8.54 million of operating income for the three months ended Sept. 30 on $255.73 million in net revenues, according to a 10-Q filed with the Securities and Exchange Commission.

The figures showed a decline from the $41.42 million operating income posted for the three months ended Sept. 30, 2008 on $316.97 million in net revenues.

The net loss for the third quarter of 2009 was $455.4 million, widening from a $23.43 million net loss for the same quarter of 2008.

Meanwhile, the company posted $52.16 million of operating income for the first nine months of 2009 on $805.63 million in net revenues, compared with $152.29 million of operating income for the first nine months of 2008 on $1.008 billion in net revenues.

The net loss for the nine months ended Sept. 30 was $554.44 million, widening from a $75.71 million net loss for the nine months ended Sept. 30, 2008.

According to the 10-Q, the decline in operating income stemmed from a decrease in revenues as a result of the general economic slowdown.

Station had $225.31 million in cash and cash equivalents at Sept. 30, down from $458.06 million at Dec. 31, 2008.

According to a company news release, the company recorded $370.6 million of reorganization items in the third quarter in connection with its Chapter 11 bankruptcy case.

These reorganization items included $51.6 million of professional fees and other costs incurred as a direct result of the Chapter 11 case, a $94 million adjustment of swap carrying values and losses of $185.7 million and $39.3 million, respectively, representing the write-off of unamortized debt discounts and debt issuance costs related to liabilities subject to compromise.

In addition, Station said it incurred $4.5 million in costs to develop new gaming opportunities in the third quarter, $2.1 million of expenses related to equity-based awards, $1.1 million of preopening expenses, a reclassification of $7.5 million in legal fees related to the proposed debt restructuring and a gain of $1.4 million related to its deferred compensation plan.

Station, a Las Vegas-based casino company, filed for bankruptcy on July 28 in the U.S. Bankruptcy Court for the District of Nevada. Its Chapter 11 case number is 09-52470.

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