Station Casinos CFO optimistic about Las Vegas economy

Station Casinos had earnings of US$ 33.5 million for the quarter, slightly less than US$ 33.8 million one year before. For the year, the company’s net income was US$ 83.3 million, compared with a loss of U$ 104.4 million in 2013.

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 US$ 234.9 million for the fourth quarter, and it rose 1.7 percent to US$ 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 US$ 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 US$ 2.1 billion