Locals gaming giant Station Casinos, whose properties in the valley include Palace Station, Red Rock Resort and Green Valley Ranch, reported its fourth quarter and full-year earnings today.
Company: Station Casinos LLC
Revenue: $333.7 million for the fourth quarter, up 2.2 percent from the same quarter in 2013. For the full year, Station’s net revenue was $1.3 billion, a 2.8 percent increase from the year before.
Earnings: $33.5 million for the quarter, slightly less than $33.8 million one year before. For the year, the company’s net income was $83.3 million, compared with a loss of $104.4 million in 2013.
What it means: Station reported revenue increases in every major operating category for both the fourth quarter and full calendar year in 2014. Casino revenue rose 5 percent to $234.9 million for the fourth quarter, and it rose 1.7 percent to $897.4 million for the full year.
Meanwhile, food and beverage revenue increased 5.3 percent for the quarter and 1.5 percent for the year. Room revenue increased 13 percent for the quarter and 6.6 percent for the year. Other revenue increased 8.5 percent for the quarter and 4.6 percent for the year.
Marc Falcone, Station’s chief financial officer, told analysts in a conference call that improvements in the Las Vegas economy seem to be spilling over into better business for the company.
“It may finally appear we have reached that inflection point we have been discussing for several years,” he said. “The encouraging trends of growth in average hourly earnings, in addition to lower gas prices, should continue to have a positive impact on discretionary income. And we believe the strength in our overall fourth quarter spending may be a sign that our guests now have more money to spend on gaming.”
Station is investing $55 million into improvements at Red Rock Resort and Green Valley Ranch. Much of the work at Red Rock has already been completed, and Falcone said Green Valley will be finished this year.
The company’s long-term debt at the end of the year was $2.1 billion.