• It's Here!

    Etf Pro

    Get the big financial market moves right, bullish or bearish with Hedgeye’s ETF Pro.

  • It's Here

    MARKET EDGES

    Identify global risks and opportunities with essential macro intel using Hedgeye’s Market Edges.

“Despite the soft revenue environment, Station Casinos reported revenue increases across all major departments and generated double-digit growth in Adjusted EBITDAM. This is our tenth consecutive quarter of gains in Adjusted EBITDAM. Our continued focus on efficiently managing our business has clearly improved our operating results."

-Marc Falcone, Executive Vice President, Chief Financial Officer and Treasurer. 

CONF CALL NOTES

  • Disappointed in LV Locals revenue
    • Higher healthcare costs, federal govt issues impacted revenue environment
  • Graton Resort & Casino:  30% Asian target population in San Francisco; 13 restaurants, 9 casual dining choices
    • Pleased with inital opening of property and consumer response; smoothest of new Stations Casino openings
    • Fees: will now receive 24% of pre-tax income (year 1-4) and 27% of pre-tax income (year 5-7)
  • 10th consectuive growth of EBITDA growth
  • Overall, core LV market remain strong; housing market has shown improvements; construction on Strip is promising
  • Nevada: Ultimate Poker continues to be the leader.  Will release new features in next few months
  • Full-launch NJ i-gaming:  Nov 26
  • North Fork Rancheria: referendum will be on Nov 2014 ballot; Oct 22 compact was published in federal register; timing has become less certain
  • Adjusted EBITDAM leverage of 5.9x will improve as Graton opens
  • 3Q Capex:  $15.6MM; $66.8MM YTD;  $20-25MM addtional capex for balance of 2013

Q & A

  • Graton:  property opened for 1 week; will provide more financial details next quarter
    • Customers:  getting decent response from Asian community
  • Simliar trends within portfolio but more softness at lower-end properties 
  • Continue to delever the company
  • LV Locals:  will not comment on Oct trends; July/August was strong, September was weak; similar comments made by other operators
    • Promotional environment:  STN remains disciplined.  Periodic episodes of promotional activity by different operators.
  • $62MM Loan (rate 11 5/8%)
  • 2014 LV Locals:  group bookings are solid, visibility is limited 
  • i-gaming NV:  CZR launched 45 days ago; impact has been within range or slightly better than what they expected; CZR grew the market a little bit; industry still remain challenged with use of credit cards; still market leader
  • i-gaming NJ: $300MM to $1.2 BN - estimate of market size; will be dependent on ACH and wire payment options - will create limitations on market size; there will be an option to provide free play for players
  • North Fork:  waiting for validation of 500k signatures; no clarity until they get those
  • Will launch with full scale of games offerings in NJ
  • i-gaming NJ:  Exclusive contract agreement with Trump