-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UrUUw87z8orjjmdtoXQzo15wbAZSISldwiFZGFqHZkySsJUdPNMppZzy1KZkXExR RQ9rJsmhU8z9vjT0/VWzlA== 0000912057-97-026435.txt : 19970808 0000912057-97-026435.hdr.sgml : 19970808 ACCESSION NUMBER: 0000912057-97-026435 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970730 ITEM INFORMATION: Other events FILED AS OF DATE: 19970807 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: STATION CASINOS INC CENTRAL INDEX KEY: 0000898660 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISCELLANEOUS AMUSEMENT & RECREATION [7990] IRS NUMBER: 880136443 STATE OF INCORPORATION: NV FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12037 FILM NUMBER: 97653379 BUSINESS ADDRESS: STREET 1: 2411 W. SAHARA AVENUE CITY: LAS VEGAS STATE: NV ZIP: 89102 BUSINESS PHONE: 7023672411 MAIL ADDRESS: STREET 1: P.O. BOX 295000 CITY: LAS VEGAS STATE: NV ZIP: 89126 8-K 1 FORM 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ---------------------------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): July 30, 1997 ------------- STATION CASINOS, INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) NEVADA 000-21640 88-0136443 - -------------------------------------------------------------------------------- (State or other (Commission (I.R.S. Employer jurisdiction of File Number) Identification No.) incorporation) 2411 WEST SAHARA AVENUE LAS VEGAS, NEVADA 89102 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: 702/367-2411 ------------ N/A - ------------------------------------------------------------------------------- (Former name or former address, if changed since last report) This is Page 1 of a Total of 4 Pages. ITEM 5. OTHER EVENTS. Attached is a press release issued by the Registrant on July 30, 1997. The press release in incorporated herein by this reference. - 2 - SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. STATION CASINOS, INC. a Nevada corporation By: /s/ Glenn C. Christenson -------------------------------------- Glenn C. Christenson Executive Vice President Chief Financial Officer and Treasurer Date: August 7, 1997 --------------- - 3 - EXHIBIT INDEX Exhibit Exhibit Number Description - ------- ----------- 99 The Registrant's press release, dated July 30, 1997. - 4 - EX-99 2 EXHIBIT 99 STATION CASINOS, INC. REPORTS FIRST QUARTER EARNINGS OF $0.1 MILLION Las Vegas, July 30 -- Station Casinos, Inc. (NYSE:STN) today announced the results of its operations for the first quarter of fiscal 1998. Station Casinos, Inc. ("STN" or "the Company") reported net revenues for the quarter of $173.5 million, a 28 percent increase over net revenues of $135.4 million in the prior year's quarter. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 7 percent to $35.0 million, compared to $32.6 million in the prior year. Excluding the impact of preopening expenses from Sunset Station Hotel & Casino, which opened June 10, and the expiration of certain option payments to lease or acquire land for future development, which had previously been capitalized but were expensed during the quarter, of $5.0 million, the Company reported net income of $0.1 million, or $0.00 per share for the quarter. "We believe that the decision to terminate certain development opportunities is consistent with the Company's strategies of focusing on existing operations and moving to deleverage the balance sheet," stated Glenn C. Christenson, executive vice-president and chief financial officer. Including the above charges, the Company reported a net loss applicable to common stock of $10.1 million, or $0.29 per share for the quarter, compared to net income applicable to common stock of $7.6 million or $0.22 per share in the prior year. NEVADA OPERATIONS The Company's Nevada Operations reported record net revenues and EBITDA for the quarter. Combined net revenues for the quarter increased 12 percent to $99.5 million, compared to $88.5 million in the prior year's quarter. Combined EBITDA increased 23 percent to $30.0 million, compared to $24.4 million in the prior year. "Our Las Vegas properties continue to perform exceptionally well with record EBITDA at Boulder Station and Texas Station, steady results at Palace Station, and strong initial results from Sunset Station," said Christenson. "We also showed margin improvement at each of our Las Vegas properties. Our margins continue to outperform our peer group and rank among the highest in Las Vegas." Palace Station Hotel & Casino (Palace Station): First quarter net revenues at Palace Station were $32.9 million, a slight decline from the prior year's quarter, while EBITDA remained steady at $9.9 million. EBITDA margins improved to 30 percent, compared to 29 percent in the prior year. "Palace Station's operating results remain impressive despite minimal capital investment over the past several years," said Christenson. Boulder Station Hotel & Casino (Boulder Station): First quarter net revenues at Boulder Station increased 4 percent to $35.9 million from $34.4 million in the prior year's quarter. EBITDA increased 16 percent to a record $13.3 million from $11.4 million, representing an EBITDA margin of 37 percent, compared to 33 percent in the prior year. "Boulder Station continues to demonstrate its operational strength. The initial impact on Boulder Station from Sunset Station's opening is in line with our expectations, and diminishing with each week of operations," said Christenson. Texas Station Gambling Hall & Hotel (Texas Station): Texas Station built upon the momentum generated in the fourth quarter of fiscal 1997 with its second consecutive quarter of record EBITDA. Net revenues increased 7 percent to $21.1 million from $19.8 million in the prior year. EBITDA grew 50 percent to $4.5 million from $3.0 million in the prior year, representing an EBITDA margin of 21 percent, the highest ever achieved at the property. "We continue to make steady progress in raising Texas Station to the standards set at our other Las Vegas properties," said Christenson. "We are pleased with the growing success at the property and will continue our efforts to make further advances in same-store growth over the next several quarters." Sunset Station Hotel & Casino (Sunset Station): Sunset Station opened to capacity crowds on June 10, expanding the Company's distribution to the southeast quadrant of the Las Vegas Valley. Net revenues and EBITDAR (earnings before interest, taxes, depreciation, amortization and rent) for the first 21 days of operations at Sunset Station were $9.5 million and $2.8 million, respectively, representing an EBITDAR margin of 29 percent. Management believes EBITDAR gives a better representation of operating cash flow at Sunset Station as a result of a $40 million operating lease included in Sunset Station's Capital structure resulting in rent expense of approximately $8 million annually. "We are very pleased with Sunset's initial results, and will continue to execute our business plan to build customer loyalty and enhance operations over the next several quarters," said Christenson. Missouri Operations Station Casino St. Charles (St. Charles Station): Net revenues at St. Charles Station declined 21 percent to $31.4 million from $39.5 million in the prior year's quarter. EBITDA decreased 41 percent to $6.7 million from $11.3 million in the prior year. Results for the quarter were negatively impacted by the opening of new competition in Maryland Heights in March 1997. "Unfortunately, the new capacity added to the St. Louis market in March has not resulted in significant market growth. The impact of new competition heightened as the quarter progressed, making for a difficult operating environment at present. We have taken steps in recent weeks to address our fixed cost structure and adapt to the new demand levels as we head into the typically stronger summer season," said Christenson. Station Casino Kansas City (Kansas City Station) Net revenues and EBITDA at Kansas City Station, which opened January 16, 1997, were $35.3 million and $1.2 million, respectively. Gaming revenues and admissions totaled $27.9 million and 1.8 million, respectively, translating into a win-per-admission of approximately $15. During the quarter, Kansas City Station focused on building top line momentum and market share which had a considerable impact on operating margins. "Although we are disappointed with our results for the quarter, we are encouraged by recent results in July which we perceive to be in excess of seasonally adjusted gains. We remain confident in our long-term business strategy. We will continue to ramp-up operations as quickly as possible, but this ramp-up process will take time," said Christenson. An 18-screen movie theater complex operated by ACT III Theatres, and a 5,700- square-foot video arcade and midway operated by Sega GameWorks opened to the public on July 4. Other Developments The Company previously announced that's had signed a non-binding letter of intent with Gordon Group Holdings, Ltd. (the "Gordon Group"), to develop and lease approximately 220,000 square feet of space in a uniquely styled, two-story entertainment complex at Station Casino St. Charles. The letter of intent is subject to various termination provisions and a 90-day due diligence period which the parties have continued to conduct beyond the original June 19 due diligence expiration date. If the Gordon Group fails to proceed with development of the retail and entertainment complex, the Company may explore several options, including but not limited to, the build-out of a portion of the complex, initiating discussions with other developers, or halting construction indefinitely. In June 1997, the Company obtained an amendment to its Amended and Restated Reducing Revolving Loan Agreement. This amendment modified the covenant restricting the maximum consolidated funded debt to EBITDA ratio for the four quarters of fiscal 1998, increasing the permitted ratio to 5.75 for the June 1997 quarter, 5.85 for the quarter ended September 1997, and 5.75 for the December 1997 and March 1998 quarters. Subsequent to fiscal 1998, the covenant returns to the original requirement. "This amendment allows for the flexibility that the Company needs to address competitive issues in St. Louis," stated Christenson. "We are pleased with the continued support of our bank group as we complete our capital expenditure program and transition toward a focus on improving operations at our existing facilities and deleveraging our balance sheet." Station Casinos, Inc. is a multi-jurisdictional gaming Company that owns and operates Palace Station Hotel & Casino, the Boulder Station Hotel & Casino, and Texas Station Gambling Hall & Hotel in Las Vegas, NV, Sunset Station Hotel & Casino in Henderson, NV, as well as slot machine route management services in Southern Nevada and Louisiana. Station Casinos, Inc. also owns and operates Station Casino St. Charles, a gaming and entertainment facility in St. Charles, MO and Station Casino Kansas City, a gaming and entertainment facility in Kansas City, MO. This press release may be deemed to contain certain forward-looking statements with respect to the financial condition, results of operations and expansion projects of STN and its subsidiaries which involve risks and uncertainties including, but not limited to, competition from other gaming operations, construction risks, and licensing and other regulatory risks. Further information on potential factors which could affect the financial condition, results of operations and expansion projects of STN and its subsidiaries are included in the filings of STN with the Securities and Exchange Commission, including, but not limited to STN's Annual Report on Form 10-K for the fiscal year ended March 31, 1997 and Registration Statement on Form S-4 File No. 333- 30685. Station Casinos, Inc. Condensed Consolidated Balance Sheets (amounts in thousands) (unaudited) June 30, March 31, 1997 1997 Assets: Cash and cash equivalents $49,018 $42,522 Accounts and notes receivable, net 12,802 7,852 Other current assets 24,178 18,995 Total current assets 85,998 69,369 Property and equipment, net 1,130,127 1,069,052 Other long-term assets 87,715 95,697 Total assets $1,303,840 $1,234,118 Liabilities and stockholders' equity: Current portion of long-term debt $19,186 $18,807 Construction contracts payable 49,679 94,835 Other current liabilities 83,342 71,624 Total current liabilities 152,207 185,266 Long-term debt, less current portion 763,907 696,156 Sunset Station first mortgage note 89,500 46,000 Other long-term liabilities 9,393 7,848 Total liabilities 1,015,007 935,270 Stockholders' equity 288,833 298,848 Total liabilities and stockholders' equity $1,303,840 $1,234,118 Station Casinos, Inc. Consolidated Statements of Operations (amounts in thousands, except per share data) (unaudited) Three Months Ended June 30, 1997 1996 Operating revenues: Casino $133,275 $104,660 Food and beverage 28,855 21,166 Room 8,039 6,444 Other 14,208 11,301 Gross revenues 184,377 143,571 Less promotional allowances (10,861) (8,131) Net revenues 173,516 135,440 Operating costs and expenses: Casino 64,291 45,314 Food and beverage 21,281 16,085 Room 3,101 2,558 Other 7,162 5,795 Selling, general and administrative 38,656 28,522 Corporate expenses 3,894 4,213 Development expenses 104 317 Depreciation and amortization 15,983 9,823 Preopening expenses 10,866 -- 165,338 112,627 Operating income 8,178 22,813 Other income (expense): Interest expense, net (16,007) (8,293) Other (5,017) 61 Income (loss) before income taxes (12,846) 14,581 Income tax (provision) benefit 4,556 (5,122) Net income (loss) (8,290) 9,459 Preferred stock dividends (1,811) (1,811) Net income (loss) applicable to common stock $(10,101) $7,648 Earnings (loss) per common share $(0.29) $0.22 Weighted average common shares outstanding 35,314 35,308 Station Casinos, Inc. Property Information Tables (amounts in thousands) (unaudited) Three Months Ended June 30, 1997 1996 Nevada Operations: Palace Station Net revenues $32,890 $34,320 Operating income $7,770 $7,893 EBITDA (2) $9,903 $9,931 Boulder Station Net revenues $35,896 $34,399 Operating income $10,383 $8,823 EBITDA (2) $13,289 $11,414 Texas Station Net revenues $21,141 $19,788 Operating income $2,354 $1,312 EBITDA (2) $4,512 $3,007 Sunset Station Net revenues $9,543 $-- Operating loss $(8,836) $-- EBITDAR (2) $2,786 $-- EBITDA (2) $2,265 $-- Total Nevada Operations: Net revenues $99,470 $88,507 Operating income $11,671 $18,028 EBITDA (2) $29,969 $24,352 Missouri Operations: Station Casino St. Charles Net revenues $31,354 $39,525 Operating income $3,378 $ 8,540 EBITDA (2) $6,664 $11,320 Station Casino Kansas City Net revenues $35,279 $-- Operating loss $(3,270) $-- EBITDA (2) $1,160 $-- Total Missouri Operations: Net revenues $66,633 $39,525 Operating income $108 $8,540 EBITDA (2) $7,824 $11,320 Station Casinos, Inc. and other Net revenues $7,413 $7,408 Operating loss $(3,601) $(3,755) EBITDA (2) $(2,766) $(3,036) Station Casinos, Inc. Property Information Tables (unaudited) Additional Data Three Months Ended June 30, 1997 1996 Palace Station Occupancy percentage 97% 97% ADR $43 $46 Boulder Station Occupancy percentage 99% 98% ADR $51 $49 Texas Station Occupancy percentage 94% 96% ADR $53 $48 Sunset Station Occupancy percentage 95% -- ADR $45 -- Station Casino Kansas City Occupancy percentage 87% -- ADR $91 -- (1) The consolidated financial statements of Station Casinos, Inc. include the accounts of: Palace Station Hotel & Casino, Inc., Boulder Station, Inc., Texas Station, Inc., Sunset Station, Inc., St. Charles Riverfront Station, Inc., Kansas City Station Corporation and the Southwest Companies. (2) EBITDA (Earnings before Interest, Taxes, Depreciation, Amortization and Preopening) and EBITDAR (Earnings before Interest, Taxes, Depreciation, Amortization, Preopening and Rent) are presented solely as a supplemental disclosure because the Company believes that certain investors consider this information useful in the evaluation of the financial performance of companies with substantial depreciation, amortization and rent expense. -----END PRIVACY-ENHANCED MESSAGE-----