LAS VEGAS--(BUSINESS WIRE)--August 7, 2013--Station Casinos LLC ("Station" or the “Company") today announced the results of its operations for the second quarter ended June 30, 2013.

“Station Casinos continued its successful track record of strong operating performance and generated its best second quarter of Adjusted EBITDAM and Adjusted EBITDAM margin in five years. Our ability to efficiently manage operating expenses without compromising our highest level of guest service led to another quarter of impressive results,” said Marc Falcone, Executive Vice President, Chief Financial Officer and Treasurer.

The Company's net revenues for the second quarter ended June 30, 2013 increased 1.4%, to $316.6 million as compared to last year’s second quarter. Adjusted EBITDAM, excluding Fertitta Interactive, was $97.7 million for the quarter, an increase of 5.7% from the same period of the prior year, and our Adjusted EBITDAM margins continue to show strong improvement, increasing 130 bps to 30.9% from a year ago. Both our Adjusted EBITDAM and margin improvement reflect our focus on efficient operations and ongoing cost savings initiatives.

Including the results of Fertitta Interactive, Adjusted EBITDAM was $96.1 million, an increase of 4.7% from $91.8 million in the same period of the prior year, while Adjusted EBITDAM margins rose 100 bps to 30.4%.

“Despite a challenging revenue environment, we were pleased to report another quarter of positive revenue growth and our ninth consecutive quarter of Adjusted EBITDAM growth. We anticipate an eventual market recovery coupled with our continued focus on efficiently managing our operations should drive substantial operating leverage for the Company,” said Falcone.

Adjusted EBITDAM is not a generally accepted accounting principle (“GAAP”) measurement and is presented solely as a supplemental disclosure because the Company believes that it is a widely used measure of operating performance in the gaming industry and is a principal basis for valuation of gaming companies. Adjusted EBITDAM is further defined in footnote 1.

On April 30, 2013, Fertitta Interactive made history as the first company to launch real money online poker in the United States through its subsidiary Ultimate Gaming via ultimatepoker.com. Ultimate Gaming successfully completed its field trial in Nevada on July 25, 2013, and the team is currently focused on integrating new upgrades and enhancements to our product offering. On July 1, 2013, Ultimate Gaming entered into an online gaming operations agreement with Trump Taj Mahal Associates LLC in Atlantic City. “Ultimate Gaming’s entrance into the New Jersey market is our next step in expanding our presence in the online gaming industry. This agreement gives Ultimate Gaming the opportunity to use its proprietary technology platform to supply real money full-scale online gaming to the New Jersey market. Ultimate Gaming has submitted all of the required applications, and we believe we are well prepared to launch in the market upon receiving New Jersey regulatory approval,” said Falcone.

As of June 30, 2013, the outstanding principal balance of long-term debt was $2.16 billion, excluding a nonrecourse land loan of $110.1 million, and cash and cash equivalents were $123.2 million. Our net debt to Adjusted EBITDAM ratio was 6.1x, excluding the land loan.

The Company will host a conference call on August 7, 2013 at 1:30 p.m. (PDT) to discuss its second quarter 2013 financial results. The conference call will consist of prepared remarks from the Company and will include a question and answer session. Those interested in participating in the call should dial (877) 269-7756 or (201) 689-7817 for international callers, approximately 15 minutes before the call start time. A replay of the call will be available from 5:00 p.m. (PDT) on August 7, 2013 at https://www.sclv.com/Investor-Relations.aspx. A live audio webcast of the call will also be available at www.sclv.com.

Station Casinos LLC is the leading provider of gaming and entertainment to the residents of Las Vegas, Nevada. Station’s properties, which are located throughout the Las Vegas valley, are regional entertainment destinations and include various amenities, including numerous restaurants, entertainment venues, movie theaters, bowling and convention/banquet space, as well as traditional casino gaming offerings such as video poker, slot machines, table games, bingo and race and sports wagering. Station owns and operates Red Rock Casino Resort Spa, Green Valley Ranch Resort Casino Spa, Palace Station Hotel & Casino, Boulder Station Hotel & Casino, Sunset Station Hotel & Casino, Santa Fe Station Hotel & Casino, Texas Station Gambling Hall & Hotel, Fiesta Rancho Casino Hotel, Fiesta Henderson Casino Hotel, Wildfire Rancho, Wildfire Boulder, Wild Wild West Gambling Hall & Hotel, Wildfire Sunset and Wildfire Anthem. Station also owns a 50% interest in Barley’s Casino & Brewing Company, Wildfire Lanes and Casino and The Greens. In addition, Station owns a 50% interest in MPM Enterprises, LLC, which is the manager of the Gun Lake Casino in southwestern Michigan, and a 57.3% interest in Fertitta Interactive.

This press release contains certain forward-looking statements with respect to the Company and its subsidiaries which involve risks and uncertainties that cannot be predicted or quantified, and consequently, actual results may differ materially from those expressed or implied herein. Such risks and uncertainties include, but are not limited to the economic downturn, and in particular the economic downturn in Nevada, and its effect on consumer spending and our business; the effects of intense competition that exists in the gaming industry; the risk that new gaming licenses or gaming activities, such as expansion of internet gaming, are approved and result in additional competition; our substantial outstanding indebtedness and the effect of our significant debt service requirements on our operations and ability to compete; risks relating to our investment in Fertitta Interactive; the risk that we will not be able to finance our development and investment projects or refinance our outstanding indebtedness; the impact of extensive regulation from gaming and other government authorities on our ability to operate our business and the risk that regulatory authorities may revoke, suspend, condition or limit our gaming or other licenses, impose substantial fines or take other actions that adversely affect us; risks associated with changes to applicable gaming and tax laws that could have a material adverse effect on our financial condition; general business conditions including competitive practices, changes in customer demand and the cyclical nature of the gaming and hospitality business in general, and general economic conditions, including interest rates, on our business and results of operations; adverse outcomes of legal proceedings and the development of, and changes in, claims or litigation reserves; risks, such as cost overruns and construction delays, associated with development, construction and management of new projects or the expansion of existing facilities, including the Graton Resort and Casino; and other risks described in the filings of the Company with the Securities and Exchange Commission.

(1) Adjusted EBITDAM consists of net income plus interest expense, net, depreciation and amortization, management fee expenses, development and preopening expenses, charges relating to share-based compensation, write-downs and other charges, write downs and other charges at joint ventures, loss on extinguishment of debt, changes in fair value of derivative instruments, adjusted EBITDAM attributable to non-controlling interests, and adjusted EBITDAM of Fertitta Interactive. Adjusted EBITDAM is presented solely as supplemental disclosure because the Company believes that it is a widely used measure of operating performance in the gaming industry and as a principal basis for valuation of gaming companies. The Company believes that in addition to cash flows and net income, Adjusted EBITDAM is a useful financial performance measurement for assessing the operating performance of the Company. Together with net income and cash flows, Adjusted EBITDAM provides investors with an additional basis to evaluate the ability of the Company to incur and service debt and incur capital expenditures. To evaluate Adjusted EBITDAM and the trends it depicts, the components should be considered. The impact of interest expense, net, depreciation and amortization, management fee expenses, development and preopening expenses, charges relating to share-based compensation, write-downs and other charges, write downs and other charges at joint ventures, loss on extinguishment of debt, changes in fair value of derivative instruments, adjusted EBITDAM attributable to non-controlling interests, and adjusted EBITDAM of Fertitta Interactive, each of which can significantly affect the Company’s results of operations and liquidity and should be considered in evaluating the Company’s operating performance, cannot be determined from Adjusted EBITDAM. Further, Adjusted EBITDAM does not represent net income or cash flows from operating, financing and investing activities as defined by generally accepted accounting principles (“GAAP”) and does not necessarily indicate cash flows will be sufficient to fund cash needs. This measure should not be considered as an alternative to net income, as an indicator of the Company’s operating performance or to cash flow as a measure of liquidity. In addition, it should be noted that not all gaming companies that report EBITDAM or adjustments to this measure may calculate EBITDAM or such adjustments in the same manner as the Company, and therefore, the Company’s measure of Adjusted EBITDAM may not be comparable to a similarly titled measure used by other gaming companies. A reconciliation of Adjusted EBITDAM to net income is included in the financial schedules accompanying this release.

Station Casinos LLC
Condensed Consolidated Statements of Operations
(amounts in thousands)
(unaudited)

			Three Months Ended						Six Months Ended
			June 30,						June 30,
			2013 (a)			2012 (b)			2013 (a)			2012 (b)
Operating revenues:
	Casino		$	224,962		$	222,271		$	445,819		$	452,450
	Food and beverage			59,580			62,511			120,265			123,460
	Room			26,857			28,210			54,129			56,068
	Other			18,052			18,753			33,896			35,186
	Management fees			11,020			7,413			20,860			15,178
		Gross revenues		340,471			339,158			674,969			682,342
	Promotional allowances			(23,892	)		(26,819	)		(46,599	)		(51,804	)
		Net revenues		316,579			312,339			628,370			630,538

Operating costs and expenses:
	Casino			85,627			89,649			170,446			177,811
	Food and beverage			40,265			38,444			82,033			80,738
	Room			10,482			10,838			21,615			21,718
	Other			7,210			7,130			13,369			13,005
	Selling, general, administrative and corporate			75,317			72,166			145,806			142,171
	Development and preopening			46			75			186			130
	Depreciation and amortization			35,417			32,253			70,748			62,954
	Management fee expense			11,790			11,586			23,536			23,367
	Write-downs and other charges, net			3,037			748			5,550			1,199
				269,191			262,889			533,289			523,093

Operating income				47,388			49,450			95,081			107,445
	Earnings from joint ventures			474			405			993			950
Operating income and earnings from joint ventures				47,862			49,855			96,074			108,395

Other expense:
	Interest expense, net			(40,530	)		(42,716	)		(83,829	)		(92,336	)
	Loss on debt extinguishment			-			-			(146,787	)		-
	Change in fair value of derivative instruments			34			-			(238	)		-
				(40,496	)		(42,716	)		(230,854	)		(92,336	)
Net income (loss)				7,366			7,139			(134,780	)		16,059
	Less: Net income (loss) attributable to noncontrolling interests			70			592			(1,284	)		2,678
Net income (loss) attributable to Station Casinos LLC members			$	7,296		$	6,547		$	(133,496	)	$	13,381

(a)		Includes results of Fertitta Interactive
(b)		Includes results of Fertitta Interactive for the period April 30 through June 30, 2012

Station Casinos LLC
Summary Information and
Reconciliation of Net Income (Loss) to Adjusted EBITDAM
(amounts in thousands)
(unaudited)

		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2013			2012			2013			2012

Net income (loss)		$	7,366		$	7,139		$	(134,780	)	$	16,059
	Interest expense, net		40,530			42,716			83,829			92,336
	Depreciation and amortization		35,417			32,253			70,748			62,954
	Management fee expense		11,790			11,586			23,536			23,367
	Development and preopening		46			75			186			130
	Share-based compensation		819			-			1,908			-
	Write-downs and other charges, net		3,037			748			5,550			1,199
	Write-downs and other charges at joint ventures (50%)		1			-			2			29
	Loss on debt extinguishment		-			-			146,787			-
	Change in fair value of derivative instruments		(34	)		-			238			-
	Adjusted EBITDAM attributable to MPM noncontrolling interests		(4,047	)		(3,362	)		(7,470	)		(7,156	)
	Adjusted EBITDAM attributable to Fertitta Interactive noncontrolling interests		1,219			655			2,509			655
	Adjusted EBITDAM attributable to Station Casinos LLC members		96,144			91,810			193,043			189,573
	Adjusted EBITDAM of Fertitta Interactive attributable to Station Casinos LLC members		1,528			604			2,894			604
	Adjusted EBITDAM excluding Fertitta Interactive	$	97,672		$	92,414		$	195,937		$	190,177


Principal amount of long-term debt at June 30, 2013:
	Credit agreement	$	1,620,938
	Senior notes		500,000
	Land loan		110,089
	Other		43,126
	Total	$	2,274,153

CONTACT:
Station Casinos LLC
Marc Falcone
Executive Vice President, Chief Financial Officer and Treasurer
(702) 495-3600
or
Joyce Thomas
Director of Investor Relations and Treasury
(702) 495-3218
or
Lori Nelson
Vice President of Corporate Communications
(702) 495-4248